Uchumi supermarket filed for bankruptcy in the Ugandan High Court in an offer to shield its remaining resources from creditors and suppliers. The Kenya-listed company appealed to the Ugandan High Court to end up its operations in Uganda taking after a few claims documented by leasers, landowners and suppliers who are demanding money for services and merchandise rendered. As per media reports, a few creditors have execution orders, while various cases are pending before distinctive courts.
In the event that the liquidation is in all actuality, the organization’s benefits would be set in the care of the Attorney General as the official recipient. “Your petitioner has had working capital constraints that have resulted in delayed payments to suppliers. As of July 31, 2015, your petitioner had outstanding payables amounting to Sh8.8b ($2.62m),” said organization secretary John K. Wambugu, in an oath to the court. The High Court welcomed every intrigued creditor to answer to Uchumi’s petition within 15 days. The entries will be heard from February 22, as indicated by the report.
Uchumi supermarkets had shut its loss making Tanzanian and Ugandan stores in in October last year as a major aspect of a turnaround plan to attempt to come back to profit. Company CEO Julius Kipng’etich then said that the organization would revamp the management which was failing to meet expectations. “Our outlets in Uganda and Tanzania make up only 4.75 per cent of our operations yet they account for over 25 per cent of our operating costs,” Kipng’etich was cited as saying.