The High Court (Commercial and Tax division) has granted Uchumi
Supermarkets Plc an additional 30 days to conclude talks with secured creditors on agreeing to the Company Voluntary
So far Uchumi has managed to get KCB, Co-operative Bank and ICDC to endorse the CVA under various terms.
Uchumi Supermarkets CEO Mohammed Mohammed said the talks with the remaining creditors UBA and the
Government are ongoing and expected to be finalized before the next date of mention.
“We are working tirelessly to reach an amicable solution that will revive Uchumi and are confident that we will get
the support from all our stakeholders,” said Mr. Mohammed in a statement.
The Company Voluntary Arrangement (CVA) provides a proposed review of the restructuring of the current debt as
well as the strategic overview of the business operations of the retail chain that has been undertaken by the Board and
Management of Uchumi Plc and other experienced consultants including Mr. Owen Koimburi who was appointed as
the Provisional Supervisor on March 20 2019.
“We are confident that the CVA presents the best proposal to ensure that all our creditors including suppliers, lenders,
staff and other service providers are able to receive their dues in a timely and orderly process while positioning Uchumi
for the next phase of its growth,” said Uchumi Supermarkets CEO Mr. Mohammed Mohammed.
Mohammed added that whereas Uchumi and the retail sector is facing challenging times due to reducing purchasing
power and rising operational costs, the CVA has taken these factors to present a clear blueprint that will better shield
the business from these risk.
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