The developers of Village Market and Tribe Hotel have threatened to start liquidation proceedings against Nairobi Business Ventures (NBV) over a Sh5.2 million debt.

In a 21-day statutory demand notice, Greenhills Investments said the sum included rent and interest owed up to November 19 this year.

NBV started out as a leather products retail chain operating under the brand name K-Shoe but exited the retail business amid losses that saw it close the stores.

The firm operated six outlets and one of its flagship stores was at the Village Market.

“You shall secure or compound for the said sum of Sh5,238,436.70 (includes rent and interest to date) to Greenhills Investments Ltd’s satisfaction or satisfaction of the court, or you shall satisfy the court that you have a counter-claim, set off or cross demand against Greenhills Investment,” said the notice.

“Further, take notice that failure to pay the afore-stated amount shall result in Greenhills Investment filing for a liquidation order against you.”

Last month, Delta International FZE, which deals in chemicals, transport and logistics, was revealed as the strategic investor looking to acquire an 84 per cent majority stake, worth Sh83 million, in NBV.

Following the restructuring, NBV will now focus on manufacturing, importing and selling raw materials used by cement and steel processors, and other companies in the infrastructure sector.

NBV was listed in 2016 at the Nairobi Securities Exchange under the Growth Enterprise Market Segment, becoming the first shoe seller on the exchange.

It listed 23.6 million shares at a price of Sh5 with the company valued at Sh118 million. But just before the buyout by Delta, its share price was at 71 cents.

NBV attributed its business challenges to circumstances beyond their control including an economic slump since 2017 banks’ credit squeeze and low consumer spending owing to job losses. 

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