Uchumi Supermarket expects its talks with a section of suppliers pushing for the winding up of the debt-ridden retailer to end today, and shine up its revival hopes.
The oldest retail chain in the country yesterday expressed high optimism it would convince 12 suppliers to consider dropping the case and agree on a goods re-stocking plan by close of business today.
Uchumi chief executive Julius Kipng’etich said the long-held talks had entered the homestretch and there were signs of reaching a winning deal that would boost the retailer’s turnaround plans.
“We are in an active engagement with retailers to finalise the discussions tomorrow (this Friday),” he said. Last month, Uchumi lost a petition to have the winding up suit determined under the current Companies Act , pushing up prospects for its liquidation in the event it fails to honour its debt obligations.
Suppliers are owed Sh3.8 billion, but more than 75 per cent of its 3,000 suppliers have agreed to turn their Sh 1.8 billion debt into equity. “We are, however, yet to get an advisor for the conversion of debt into shares,” said Kipng’etich.