Clothing and home products retailer Deacons Kenya Ltd is planning a joint venture with South Africa’s Woolworths. Deacons, an umbrella company which owns and manages various internationally acclaimed retail brands in Kenya, Uganda and Rwanda published a notice on sections of the media saying the proposed joint venture is in the final stages.

Deacons has distribution agreements German sporting-goods maker Adidas AG and South African retailers Mr. Price Group Limited, Truworth International Limited and Woolworths Holding Ltd.

Deacons chief executive Wahome Muchiri told the Saturday Nation newspaper, the deal would delay its planned listing at the Nairobi Securities Exchange (NSE) .

“We are currently in discussion and yes it will delay the listing, as we have to be absolutely clear on all our supply relationships,” said Wahome.

Deacon said in a statement in 2010 that it had received regulatory approval from the Capital Markets Authority (CMA) to raise additional funds from both existing and potential new shareholders and planned to list in 12 to 18 months. The firm manged to sell 701 million shillings ($8.7 million) of stock, falling short of its 800 million shillings ($10 million ) target to fund its expansion in the region.

Muchiri said Woolworths SA will become a shareholding partner with Deacons on the Woolworths business.

“This will solidify the brands performance in many respects including better supply chain planning and pricing, marketing and visual merchandising expertise,” he said.

Deacons has faced tough times in the market due to poor performance in its Tanzania business prompting the company to close three of its Tanzanian retail to to stop its five-year loss-making streak in the country.

Deacons stocks brands such as Woolworths, Truworths, Identity, 4U2, Mr. Price, Mr. Price Home, Angelo, Adidas, Life Fitness and babyshop.

The company began operations in 1958 with a distribution agreement for Marks & Spencer Group Plc in East Africa for 22 years.