Deacons Lays off top managers ahead of branch closures

Fashion retailer Deacons has retrenched five senior managers ahead of the expected closure of poorly performing branches by the end of next month.The NSE-listed firm this week handed job termination letters to Joseph Sitati (chief finance officer), Jeddidah Thotho (retail director) and Olive Waithaka (ICT manager).Martha Wareithi (4U2 & Angelo head) and Robert Nderitu (sports division head) have also been asked to leave the company effective Friday.

The retailer, which reported a net loss of Sh278 million for the year to December compared to Sh100.6 million in 2015, says the sackings are part of an ongoing restructuring brought about by a depressed trading environment.

“We have let go of some senior managers as part of the austerity measures that are in response to the tough trading conditions we find ourselves in,” Muchiri Wahome, Deacon’s managing director said. When announcing its full-year results on April 21, the retailer said interest rate capping on lending effective last September led to a reduction in liquidity in the market, decreasing customer spending and store productivity.

Mr Wahome at the time said that, while there are more shopping malls across the country, the number of buyers had not increased due to weaker purchasing power.

These depressed economic conditions, he added, has forced Deacons to initiate cost-cutting measures by closing non-performing outlets and laying off some staff to tame its wage bill.

siku hizi tunabuy nguo za EPZ za 300 bob

The portal says otherwise

Nakmat pia si wanazifunga

Sagem buttons hazifinyiki poa ama?

The sacking should have started with the MD for he is responsible for implementation of strategic vision of the company. Because I suspect that the problem is in their business model where they expect to continue selling their merchandise in expensive physical locations rather then embrace technology with online stores that have less overhead costs and wider reach.

Anyway watajua wenyewe

hizo nguo ni kubwa…ni kama they are made for obese Americans but on the other side, mbona have they not thought of making sizable and good clothes and sell some in the local market? nmeona potential buyers from the previous sales

Nimeona mahali eti pia Supersport wamefuta watu na EABL wamepeana notices of termination. Someone confirm kama ni rumours.

things are really bad. guys losing their jobs left right centre. ata collection ya njiraini ya PAYE has taken a hit!

Was told that there are some brands that are struggling in malls but because customers expect to find them when they go for (window) shopping , they have to continue being there. Brand presence. Labda Deacons wameamua enough is enough. Others may join.

Is it really that bad or its the election manenos.

Supersport ni ukweli.

ni kweli

Iko mbaya sana kanono baki hapo Qatar usirudi 254…

Pardon me for highlighting the aforementioned.

The lack of diversity and ukabila will be Kenya’s undoing. Do you expect a company to do well in that setting? Can guarantee you they have employed their relatives that never show up to work yet get a salary the Kenyan way. Just saying. Yet you expect Deacons to deliver success like manna from heaven. o_O

It’s not always about nepotism and tribalism all the damn time.



Yes it is. Unless you live in an alternative reality this is not modern day Kenya riddled with tribalism and nepotism each waking moment.

wapi huko mkubwa

I think Deacons belongs to the Kibaki Family, Wahome is a Nephew to Kibaki or something.