Uchumi faces auction over Sh67m debt


Uchumi supermarket

In Summary

  • Struggling retailer Uchumi has 15 days to settle a Sh67.6 million debt to a supplier or face auction.
  • Uchumi has been struggling with piling debts that have aggravated the retailer’s financial position and workers going for months without pay.
  • Uchumi has been seeking capital injection to the tune of Ksh.3 billion from a strategic investor to stay afloat.

Struggling retailer Uchumi has 15 days to settle a Sh67.6 million debt to a supplier or face auction.

Euromat limited, a local supplier has been given the go ahead by the Milimani court to auction Uchumi’s movable goods should the retailer renege to pay up the debt.

In a notice from the high court Uchumi has been ordered to pay Sh67.6 million debt and Sh155,335 being interest accrued.

“These are to command you to sell by auction after giving 15 days previous notice and after making due proclamation the judgment debtor’s property attached under a warrant from this court,” reads the warrant.

Uchumi has been struggling with piling debts that have aggravated the retailer’s financial position and workers going for months without pay.

Last year the government released Sh600 million meant to help Uchumi resuscitate its business by clearing huge debts owed to suppliers and financiers.

But it is perhaps inability to secure a strategic investor that has slowed down its recovery process.

Uchumi has been seeking capital injection to the tune of Sh3 billion from a strategic investor to stay afloat.

Uchumi’s half year net loss widens 63.5 percent to Sh895 million as revenues dropped to Sh527 million.

The retail chain which is saddled with debts has extended closure of branches with the latest being capital center and Sarit Center.

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Story By Sophie Kinoti
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