Troubled e-commerce firm Copia goes into administration
Online retailer Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators of Copia Kenya Limited.
Online retailer Copia Kenya has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators of Copia Kenya Limited.
The Joint administrators will now handle all the company’s affairs, business, and properties, effectively removing control from the current directors.
These administrators will act as agents of the company without bearing personal liability. In their statement, the company requested that any claims against it be submitted in writing, with supporting documents, to the joint administrators by June 23, 2024, for review.
This decision follows a tough announcement on May 19, 2024, where the retailer revealed plans to lay off 1,060 employees due to financial difficulties. Despite efforts to secure additional funding and navigate financial challenges, the company has struggled to stay afloat.
“Given our ongoing financial difficulties and despite our best efforts to secure more funding, we are forced to undergo a comprehensive organizational restructuring to sustain our operations or consider the possibility of shutting down,” the company explained.
Copia Kenya has started this process by issuing the affected employees the required one-month notice, as mandated by labor laws. The company clarified that the layoffs would only affect those whose roles are directly impacted by the restructuring. However, if operations are entirely halted, all employees could face termination.
Copia was established in 2013 with the mission to deliver e-commerce and financial services to middle- and low-income households in Africa. The company leveraged mobile technology and a network of 30,000 local agents to connect with its target audience.
