NAIROBI, Kenya, Mar 22 – Uchumi Supermarkets has filed a creditors plan at the High Court outlining the measures the troubled retailer will take towards reducing its debt as well as initiatives towards restocking its branches.
Uchumi’s Chief Executive Mohamed Mohamed said part of the proposal, which is subject to creditors approval, includes restructuring, waiving off some of the retail chain’s debt as well as cost management.
“The creditors plan presents the most sustainable and viable route to normalcy while taking care of our suppliers, lenders, staff, shareholders and other stakeholders’ interests. This plan demonstrates our commitment towards our stakeholders and we urge everyone to work with us to return Uchumi to its glory days,” said Mohamed.
He added that the plan presents the most sustainable and viable route to the resumption of normal operations while taking care of suppliers, lenders, staff, shareholders and other stakeholders’ interests.
Franchising, opening of smaller branches and going digital are some of the strategies that the Board and Management of Uchumi Supermarkets Ltd have identified for the chains return to normalcy.
At the same time, Uchumi has appointed Owen Koimburi as the Interim Supervisor as per the Insolvency ACT 2015. With over 20 years of experience in accounting and financial Management, Koimburi will be tasked with taking care of the creditors’ interests.
Uchumi Supermarkets’ Board and management put in place a team of external legal, accounting and retail consultants in December 2018 whose task was to identify and advise on the best options available for the listed retail to settle its obligations as well as restructure the Company’s liabilities.