Copia’s financial problems lead to liquidation process

Copia Global, a Kenyan B2C e-commerce startup that filed for bankruptcy on May 24, has decided to halt efforts to revive its business. Instead, it will liquidate its assets to pay off creditors, according to an internal memo obtained by TechCabal. The liquidation marks the end of the e-commerce platform that gave rural and suburban customers the ability to order household items like sugar, cooking oil and toiletries.

The company plans to lay off all employees and sell assets, including delivery vehicles, warehouses and office equipment, to raise funds to settle debts to creditors.

“It was anticipated that Copia would continue to operate, albeit with significantly reduced operations, in order to attract much-needed investment through the new company and ensure business continuity,” Copia’s administrators said in an email to employees.

Unfortunately, the company was not successful in its efforts, meaning that it was left with a third objective under the Insolvency Act 2015: selling assets to satisfy creditor claims.

According to a memo from the company’s administrators, the employees will receive their severance payments on July 4. In addition, the company has scheduled a meeting with creditors on July 14 to discuss their claims.

Makenzi Muthusi, Copia’s administrator, did not immediately respond to a request for comment.

Founded by Tracey Turner and Jonathan Lewis in 2013, Copia, which is currently struggling financially, began talks with potential investors in June 2024. However, according to a source with direct knowledge of the situation, those talks ultimately fell through.

In May 2024, KPMG’s Makenzi Muthusi and Julius Ngonga were appointed administrators by the firm, responding to financial challenges that threatened payroll. Subsequently, 1,060 staff were furloughed to reduce overheads and sustain operations until additional funding could be secured. Copia’s liquidation follows another difficult year for B2B e-commerce firms, which are grappling with tightening macroeconomic conditions across the continent.

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