News coming in is that the former chief executive of Nakumatt supermarkets Mr Atul Shah, is set to lose his Lavington home to auctioneers in the month of August. This comes after the supermarket defaulting on a Sh2 billion KCB loan he had guaranteed the fallen retail supermarket.
KCB bank has planned to sell the four-bedroom villa together with the servants quarter when the auctioneer’s hammer falls on August 24 this month.
“We are going to sell it via public auction on August 24 2021. One of the representatives commented.
Mr Shah,being a guarantor, had used this particular property as an additional security in support of the multiple bank loans.
KCB had earlier sold Mr Shah’s property earlier in Industrial Area,for around Sh1.04 billion.
Mr Shahs Lavington home was offered as security in the year 2011
This prompted institutions to name the former Nakumatt CEO as one of the top 50 influential businessmen in the world, alongside Equity Bank’s James Mwangi and Nigeria’s leading industrialist Aliko Dangote.
After the Nakumatt empire collapsed, the 59-year-old entrepreneur has managed to keep away from media.
Nakumattwas formarly a matress shop had managed to grow to have multiple branches shut down after they were unable to pay suppliers, landlords and other creditors.
Banks that Nakumatt owed billions of shillings were greatly affected by the collapsed retailer are now fighting over Mr Shah’s personal property to recover their money.
Nakumatt closed shop in January 2020 with debts estimated at around Sh30 billion .This included kes 18 billion to suppliers, kes 4 billion to commercial paper holders and all the rest to commercial banks, who are notably more enthusiastic to collect their alleged loans.