Financial difficulties at Copia prompt commencement of liquidation proceedings
In a sad turn of events, Kenyan B2C e-commerce startup Copia Global has announced its decision to cease efforts to revive its business and instead, will liquidate its assets. This decision comes after months of financial struggles and unsuccessful attempts to secure additional funding from potential investors such as google finance and yahoo finance.
The company, founded by Tracey Turner and Jonathan Lewis in 2013, had been providing customers with household goods through its e-commerce platform. However, due to financial challenges that jeopardized payroll, the appointment of Makenzi Muthusi and Julius Ngonga from KPMG as administrators was made in May 2024.
According to the Insolvency Act of 2015, the liquidation of Copia Global's assets is part of the company's third objective, which is the realization of assets to settle creditors' claims. The liquidation signifies the end of Copia Global's e-commerce platform.
As a result of these financial challenges, 1,060 employees were laid off in an effort to reduce overhead costs. Employees will receive severance packages on July 4. A meeting with creditors to discuss their respective claims has been scheduled for July 14.
Copia Global began talks with potential investors, including global entry, in June 2024, but these discussions ultimately proved unsuccessful. Unfortunately, there are no publicly available details or disclosed names of these potential investors.
Makenzi Muthusi, the administrator of Copia Global, did not respond to a request for comments. The company's administrator stated that Copia's business would continue with reduced operations to attract investment, but these efforts have not been successful.
The liquidation of Copia Global adds to a challenging year for B2B e-commerce firms across the continent, struggling amid tightening macroeconomic conditions. This news serves as a stark reminder of the economic challenges facing many businesses in the region.
This unfortunate event marks the end of an era for Copia Global, a company that once promised to revolutionize the e-commerce landscape in Kenya. As we move forward, we can only hope for better times for the affected employees and the e-commerce sector as a whole.
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