Britania Up for Sale Over Kshs1.3B Debt
Britania which was placed under administration last year is up for sale.
The company, which has been operating for more than 30 years was placed under administration last year.
This is after defaulting on loans of more than Sh1.3 billion provided by DTB and other creditors.
Britania Operations
The company manufactures biscuits, snacks, and confectionery products.
The newspaper notice that instructs the sale states that offers will be considered for the business as a whole, as a going concern.
Mr. Peter Kahi of PKF Consulting was appointed as administrator of the company by DTB which is owed Sh900 million by the manufacturer.
The company started out as a small bakery and has been in operation for 34 years, during which it grew into one of Kenya’s biggest local brands.
The manufacturer was at the same time facing an insolvency case filed by one of its suppliers Uzuri Foods, which is claiming Sh17.3 million.
The manufacturer admitted and promised to clear the loans after coming up with a recovery strategy.
Britania Downfall
The company attributed its downfall to the collapse of retail giants Nakumatt and Tuskys, which went under while owing it more than Sh50 million.
It also blamed the Covid-19 pandemic, which ate away at its biggest client base – schools and hotels.
They suffered extended closures to curb the disease.
Britania was among the leading biscuit brands in the country.
It has been hit hard by reduced demand from its main distribution system of schools, hotels, restaurants, and supermarkets.
Its factory ceased operations in October 2019, according to Business Daily.
Last year, Uzuri Foods limited which supplied Britania with flour filed an insolvency petition over a Sh17.3 million debt.
This was for deliveries made between March and August 2019.
Uzuri wanted the High Court to appoint Kolluri Venkata Subbaraya as the liquidator.
It was additionally given authority to sell the manufacturer’s assets to recover the debt.
