Copia Global, the Kenyan B2C e-commerce startup that went into administration on May 24, is still a going concern despite the central office lay-offs that occurred Thursday, laying off 1,060 workers.
In the termination letters delivered to the workers on Friday, administrators informed them that their goal is to keep the business going, with the new leadership seeking to source for the capital needed for operation through cost-cutting. Copia has appointed Makenzi Muthusi and Julius Ngonga of KPMG as joint administrators on 24th May Pazar.
“We must ensure the business is right sized and right shaped to meet the new digital business opportunity and position the business for profitable growth. To maximize the potential for Copia to succeed long term, it is necessary to make some difficult decisions regarding its current operations,” Makenzi Muthusi Copia’s joint administrator in their termination letter to the firm.
“Unfortunately, your employment with Copia Kenya Limited (under administration) will be terminated, effective 7th June 2024. This decision is in no way a reflection of your performance or contributions to the company but rather a consequence of the current circumstances.”
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Copia, also revealed to the employees that the company would brief them on possible employment opportunities as the administrator assures the e-commerce giant of revamping the company it had brought to its knees. However, the issue of how the new management will be able to persuade new investors to bring in fresh capital after previous similar attempts to bail out the company failed in early May remains to be answered.
The jobs cuts came after the firm on 4th June announced it would cease accepting orders from Central and Eastern Kenya, suggesting that the administrators are slowing down operation to reduce cashflow woes.
Copia Global was established in 2013 by Tracey Turner and Jonathan Lewis to enable physical retailers in the rural and peri-urban areas to order more stocks of daily necessities with USSD or an application. It secured $123 million in venture capital financing, which makes this firm one of the many firms that has received investors’ goodwill but is unable to switch on profit.
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