Financial hardship at Copia results in the commencement of liquidation proceedings.
Copia Global, the Kenyan B2C e-commerce startup founded in 2013 by Tracey Turner and Jonathan Lewis, has decided to cease efforts to revive its business. The company's liquidation signifies the end of the e-commerce platform that provided customers in rural and peri-urban areas with the ability to order household goods.
The financial challenges facing Copia in May 2024 led to the layoff of 1,060 employees to reduce overhead costs. Makenzi Muthusi and Julius Ngonga, who were appointed as administrators in response to these financial difficulties, did not respond to a request for comments.
The liquidation of Copia Global is in accordance with the third objective under the Insolvency Act of 2015: the realization of assets to settle creditors' claims. The company will liquidate its assets, including delivery trucks, warehouses, and office equipment, to pay off its creditors.
A meeting with creditors to discuss their respective claims has been scheduled for July 14. Employees will receive severance packages on July 4. Despite talks with potential investors in June 2024, the company regrettably did not succeed in attracting the necessary investment to continue as a going concern.
The liquidation of Copia adds to a challenging year for B2B e-commerce firms on the continent, struggling amid tightening macroeconomic conditions. The company continued operations with reduced staff until June, when the decision to cease efforts to revive the business was made.
The administrator stated that Copia's business would have continued with significantly reduced operations to attract investment. However, these talks with potential investors, according to a source, were ultimately unsuccessful. There are no publicly available search results indicating which potential investors Copia Global was in talks with in June 2024 before the liquidation of the company.
The liquidation of Copia Global marks a significant loss for the e-commerce industry in Kenya and beyond. The company's mission to provide affordable household goods to customers in rural and peri-urban areas was unique and much-needed. As the industry continues to evolve, it is hoped that other companies will step up to fill the void left by Copia's departure.
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