Uchumi Supermarkets Face Closure Over Ksh.44M Debt | Vosena News

Uchumi Supermarkets Face Closure Over Ksh.44M Debt

A Kenyan company is seeking the dissolution of retailer Uchumi Supermarkets over a Ksh.44.8million debt, according to court documents seen by Reuters.

Documents dated Aug. 31 and filed by Githunguri Dairies, a local milk producer and processor, at the High Court in Nairobi also seek an order from the court to have Uchumi placed under receivership.

A local newspaper reported on Thursday that five other companies had also joined the suit, seeking to recover a total of 471 million shillings.

Officials at Uchumi Supermarkets were not immediately available to comment.

Uchumi, Kenya’s only listed retailer, was thrown into turmoil in June 2015 when it sacked its chief executive for alleged gross misconduct and an audit uncovered the loss of funds raised through a rights issue.

A subsequent exodus of suppliers, unhappy over unpaid bills, left empty shelves in the chain’s stores, as losses mounted.

A subsequent attempt to turn the supermarket around then stalled, and in late last year the CEO hired to revive the chain resigned.

The troubles at Uchumi Supermarkets, and the implosion of privately held retailer Nakumatt, have opened the door to foreign chains such as France’s Carrefour and The Game to operate franchises in the East African nation.

Uchumi had another period on receivership starting in mid-2006.

 

 

Citizen Digital

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Brandon Vosenah

Brandon Vosenah

I have a great passion in writing. I get you all informed on emerging issues, a taste of different cultures and everything from news.
Brandon Vosenah
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