Fashion retailer Deacons has lost the lucrative Franchise to run Mr. Price outlets in Kenya to MRP Kenya limited in what is set to worsen its financial troubles.
A notice sent to the Nairobi Securities Exchange (NSE) says that Deacons East Africa will transfer the Mr. Price franchised business on or about April 1, 2018.
“All money debts or liabilities and owing by the transferor in respect of the business up to the date of transfer as set out shall be received and paid by the Transferor,” the notice reads in part.
The firm has seen its profits shrink in the recent months and it has issued a profit warning that its earnings for the full-year through December will drop by at least 25 percent.
Deacons, which operates in Kenya, Rwanda, Mauritius, and Uganda, also blamed its financial woes on the credit crunch following interest rate cap and competition in the retail sector due to an oversupply of malls.
Mrp Retail Inc was founded in 1976. The Company’s line of business includes the retail sale of musical instruments, sheet music, and similar supplies.