Uchumi Supermarkets yesterday closed down its branches in Nairobi for restocking, after receiving Kshs 700 million from the government early this month.
In a public notice, the listed retailer, whose shelves have been running almost empty for the past two years, indicated that the stores will be opened today.
“The management wishes to inform the public that Uchumi Nairobi branches will remain closed on December 13, 2017 for restocking our shelves. All our staff will look forward to welcoming our valued customers back to our stores as we re-open for business on December 14, 2017,’’ read the statement.
According to the acting head of marketing at Uchumi Supermarkets Henry Bett the retailer received Kshs 700 million on December 1, and that the cash will go towards restocking.
Even so, the retailer is silent on the names of suppliers and the formula on how to divide the cash, with inside information indicating division in the board since the amount was received. It has however promised customers to expect a wide array of grocery, liquor products, household items and a fantastic bakery.
Early this year, the cash-strapped retailer received Kshs 500 million from the government which it used to clear accumulated debts owed to suppliers as part of a Kshs 1.8 billion bailout from the state. The National Treasury has challenged it to stabilise the Kenyan business before the remaining Sh600 million meant for re-entry into the Uganda and Tanzania markets is released.
Meanwhile, Uchumi is likely to nail the Kshs 3.5 billion investor before the end of March next year, if a notice postponing its Annual General Meeting, which had been slated for December 20, 2017, is anything to go by.
In a public notice issued yesterday, the retailer, whose plans of completing the restructuring plan before the end of this year were hampered by the protracted presidential election cycle, indicated that it is likely to hold the AGM before March next year after completing negotiations with the potential investor.
“The board anticipates the AGM will be held before March 31, 2018,’’ read the statement.
The news of restocking and the possibility of nailing a new investor is likely to warm the hearts of disgruntled shareholders who have not received dividends for the past three years due to the loss-making nature of the firm.
Uchumi shares however closed unchanged at Sh3.50 at the Nairobi Securities Exchange, an indication that investors are still skeptical.
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