Hopes of Saving Uchumi Now Shattered

By Allan Rotich Posted 12 June 2006 @ 12:40 pm EET     Print     Reprint     E-Mail     Comments

Nairobi (IBTimes.com) - Uchumi Supermarkets chain hopes were shattered on Sunday when it was put on sale.Receiver-managers said the supermarket’s 17 branches and other assets would be sold after Monday 19. On offer are the business, fixtures and equipment, motor vehicles, inventory, retail management information system and other property in the outlets now under receivership.

Click to Enlarge Uchumi Supermarkets' ...

The receiver-managers said a sale memorandum would be available to interested bidders on request and upon payment of Sh10,000. Offers for individual assets or groups would be considered. The supermarket chain was closed down on June 1, taking with it hundreds of jobs and the savings by small-scale investors and leaving thousands of suppliers stranded.

Branches to be sold include hypermarkets on Ngong Road, Sarit Centre, Mombasa Road and Langata Road. Others are Buru Buru, Westlands, Jogoo Road, City Square, Kimathi Street, Ngong Road, Koinange Street, Nairobi West and Parklands branches.

Affected upcountry branches are situated in Karatina, Meru, Eldoret and Nakuru. The sale announcement is carried in a paid advertisement today. The company, with total assets worth Sh1.8 billion, owed banks more than Sh3 billion while suppliers and short-term lenders are owed Sh2.2 billion. The company’s 18 million shareholders also stand to lose as they were left holding paper valued at more than Sh2.6 billion.

Last week, Trade and Industry minister, Dr Mukhisa Kituyi, said he had ordered an investigation into the last days of the company’s operations.

"I have asked my officers to give me detailed account of the action and deliberations of board meeting held before the announcement that Uchumi was going under," he said.