Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG East Africa as joint administrators of Copia Kenya Limited.
In a notice, the online retailer states that the appointed joint administrators will manage all the company's affairs, business, and properties.
Further, the company stated that its directors will no longer have any power over its affairs and business, and the administrators will act as agents of the company without personal liability.
“Any party having claims against the company should submit their claims in writing with relevant supporting documentation to the joints to the joints administrators before 23rd June 2024 for consideration.”
This appointment comes as the retailer company announced plans to lay off 1,060 employees due to financial constraints on May 19, 2024.
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The decision came as the company is battling ongoing financial challenges despite efforts to secure additional funding and navigate its obstacles.
“In light of our persistent financial challenges and despite our best efforts to explore avenues for additional funding, we find ourselves compelled to undertake a comprehensive organizational restructuring to ensure the sustainability of our operations, or even consider the possibility of shutting down,” it said in a statement.
Copia Kenya has initiated the process by serving affected employees with the requisite one-month notice period, as mandated by labor laws.
It clarified that the layoffs would exclusively affect individuals whose roles are directly impacted by the restructuring.
However, the company cautioned that should operations be entirely halted, all staff members would be at risk of termination.
