E-commerce platform Copia goes into administration, putting jobs at risk

NAIROBI Kenya, May 25 – Online retailer Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators of Copia Kenya Limited.

In the notice, seen by Capital Business, the company states that all affairs, business and assets of the company will be managed by appointed co-managers.

The company stated that the company’s directors would no longer have any authority over the company’s affairs and activities.

Administrators act as agents of the company without personal liability.

“Any party with a claim against the company should submit its claims in writing, together with appropriate supporting pond documentation, to the pond managers by June 23, 2024 for consideration,” the statement reads.

This appointment follows the retail company’s May 19, 2024 announcement of plans to lay off 1,060 employees due to financial constraints.

The decision comes as the company faces ongoing financial challenges despite efforts to secure additional financing and overcome obstacles.

“In light of our ongoing financial challenges and despite our best efforts to explore additional financing options, we are required to undertake a comprehensive organizational restructuring to ensure the sustainability of our business and may even consider closure,” it said. in a statement.

Copia Kenya initiated this process by serving the affected employees with the required one month’s notice in line with labor laws.

It was explained that the layoffs would only affect people whose roles are directly affected by the restructuring.

However, the company warned that if operations were completely suspended, all employees would be at risk of dismissal.

The statement sheds light on the obstacles faced by start-ups in Kenya as they seek to address financial issues and ensure the sustainability of their businesses.

The country’s startup ecosystem has seen closures, which have been attributed to increased tax and operational expenses.