Kwik’s Parent Company Declares Bankrupt Following a Dispute with Its Creditors

Africa Delivery Technologies Holding, the parent company of Kwik, a popular delivery service in Nigeria, has been declared bankrupt by a court in Amsterdam. This happened after a disagreement with some creditors, including a former employee who says the company owes him about $50,000.

Even though Kwik’s parent company declares bankrupt, Kwik’s CEO, Romain Peroit-Lellig, says the news doesn’t affect Kwik’s work in Nigeria. He says the company is still strong financially. Kwik serves over 300,000 merchants and recently got $1 million in new funding to help grow the business.

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This bankruptcy is different from what happened with Gokada, another delivery startup in Nigeria that filed for bankruptcy earlier this year. Gokada chose to file for bankruptcy to protect itself and find a way to pay back its debts. But Kwik’s parent company bankruptcy was forced by creditors who believe the company isn’t paying what it owes.

The main reason for this bankruptcy is a dispute with Adam Grant, a former sales head at Kwik. He sued the company for firing him unfairly and was awarded $120,000 in unpaid salary. Later, they agreed to reduce the amount to $75,000. Kwik paid $25,000 but stopped paying the rest because they were worried about taxes in France. Grant refused to handle the tax issue and instead pushed for bankruptcy.

The court didn’t agree with Kwik about the taxes and said no extra tax was due. Grant then asked the court to put the company under administration so a neutral person could manage the company’s finances and make sure creditors get paid. Other creditors also said Kwik was avoiding paying its debts.

Another company called B54, which gives loans to startups, says Kwik owes them $50,000 and has asked a Nigerian court to liquidate Kwik’s parent company because of this. Kwik’s CEO admitted they owe the money but said the legal papers haven’t been officially served yet. He also said he has tried to talk to B54 but hasn’t been able to reach them.

Kwik is also dealing with a lawsuit from the Guardian Nigeria, which wants to collect unpaid rent for a warehouse. The case is still ongoing, but Kwik says they haven’t been formally notified.

Despite all these problems, Kwik’s CEO says the company is not broke. Kwik has raised $6 million so far, including $1 million this year. They owe about $2 million in convertible notes, which are loans that can turn into shares later on. Peroit-Lellig says the company doesn’t owe much money to anyone except its shareholders. He says the business is running smoothly, employees and delivery riders are getting paid, and services continue without any problems.

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Kwik is trying to work things out with Grant’s legal team. Unlike Gokada’s voluntary bankruptcy, Kwik’s bankruptcy was forced by creditors who can now try to sell company assets to get their money back. Peroit-Lellig says the situation is not as bad as it seems and believes they can fix it.

Kwik also thanked its customers, partners, delivery riders, and shareholders for their support. They promised to keep providing good service and value to everyone who depends on them.

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