In recent regulatory filings, it was revealed that a well-known last-mile delivery company in Nigeria, Gokada, filed for Chapter 11 bankruptcy protection to restructure its debts and attempt a financial turnaround. This legal move allows the organization to create a plan to repay creditors over time without having to liquidate its assets.
Despite efforts to secure new funding, including a campaign in 2023 to raise $750,000 from retail investors, Gokada faced financial challenges. The company’s liabilities were reported to be $5.2 million, with total assets of $560,000 in October 2024. This situation led to a decline in gross revenues compared to previous years.
The CEO of Gokada mentioned in an email that the company had struggled throughout 2024 due to difficulties in securing funding and the depreciation of the Nigerian Naira, impacting profitability goals.
Despite these setbacks, Gokada remains determined to navigate its financial challenges through the Chapter 11 process. The company had previously adapted its business model, transitioning to logistics and food delivery services after facing regulatory obstacles in 2020.
Gokada’s journey, marked by leadership changes and strategic shifts, showcases the complexities of the business landscape. The company’s bankruptcy filing emphasizes the importance of balancing cost-cutting measures with strategic financial decisions to ensure long-term sustainability.