Kenyan supermarket chain Nakumatt has acknowledged that the company is passing through “a challenging period” handling the protesting suppliers who have refused to restock the retailer’s shelves due to the unsettled bills, some dating back to early 2014. The supermarket, which has been affected by stock outs at its various stores throughout the country, expressed optimism in regularizing the situation through extensive talks and patch ups with the furious suppliers.
Newly instated chief marketing officer Andrew Dixon, a former Tesco executive, has been assigned to sort out the debt concern which has tripled to Sh15 billion in 2015 from Sh4.2 billion in 2011. Mr. Dixon said that the retailer is going through a challenging period which has “necessitated a number of rapid interventions.”
Mr Dixon said: “We recognise the prevailing issue in some of our outlets concerning operations and stocking. We are undergoing a challenging period in our business operations which has necessitated a number of rapid interventions. I would like to reassure you that we are on course to regularise our operations and stocks in coming days.”
The supermarket chain is presently working on a $75 million deal to sell a 25 percent of its shares to an undisclosed investor to help with the debt issues.