Kenya’s oldest retailer Uchumi supermarket, has today said has that it wants to return to its glory days. The struggling supermarket chain has appointed an administrator and submitted a proposal to waiver part of its debt to creditors while it seeks to make an elusive comeback.
The proposal submitted to the high court on 22nd of March, details plans that the retailer will take towards reducing its debt, restocking its branches, rebranding and returning to full operations in a timely manner.
As per the proposal, Mr. Owen Koimburi who is the appointed administrator will be in charge of taking care of the creditors’ interests which may include restructuring and costs 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 Uchumi Supermarkets Chief Executive Officer. Mr. Mohamed Mohamed.
In October last year, Uchumi had sort protection from angry creditors who included the United Bank of Africa (UBA) through a 2015 insolvency act which allows firms to plead for protection from auctioneers as it tries to salvage the business.
Uchumi has further indicated that it plans to franchise the business and venture into the e-commerce space as part of its new strategies to return to full normalcy.
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