Biscuit maker Britania faces bleaker future as liquidation approaches
By John Otini, July 10, 2023
Biscuit manufacturer Britannia, a prominent player in the food industry, is on the brink of liquidation following its placement under administration in 2021.
Britannia, which has enjoyed a successful run of over 30 years, encountered financial troubles after defaulting on loans amounting to more than Sh1.3 billion, sourced from DTB and other creditors.
The liquidation process was confirmed in a Kenya Gazette notice released on Friday by the appointed liquidator, Peter Kahi of PKF Consulting.
“This follows the registration of the notice to transition the company from administration to creditors’ voluntary liquidation,” he said.
Britannia’s entire business, including its state-of-the-art plant located in Nairobi’s Industrial Area, factory buildings, and raw materials, will be liquidated, according to the notice.
The decision to place Britannia under administration was made in response to its mounting debt burden and failure to meet financial obligations to its creditors.
Despite efforts to restructure the company and negotiate repayment plans, Britannia was unable to rectify its financial situation and avoid liquidation. Britannia’s liquidation process will involve the sale of its assets to settle outstanding debts owed to creditors. This includes its high-tech plant, which was known for its advanced manufacturing capabilities, contributing to the company’s success over the years.
The liquidation will also encompass the disposal of factory buildings and the utilization of raw materials to generate funds for debt repayment.
While this development marks the end of an era for Britannia, it also presents an opportunity for potential investors or competitors in the food industry to acquire valuable assets at competitive prices.
The sale of Britannia’s assets, particularly its modern plant, may attract interest from industry players looking to expand their manufacturing capacity or enter new markets.
As the liquidation process unfolds, stakeholders, including employees, creditors, and customers, will be closely monitoring developments. Efforts will likely be made to ensure a fair distribution of proceeds from asset sales to satisfy outstanding debts and fulfill any obligations to employees.
Kahi was appointed as administrator of the company by DTB which is owed Sh900 million by the manufacturer.