Insolvent Uchumi Supermarkets is working on a plan to turn around its fortunes, already the retailer has identified a financial restructuring team that will be tasked with rescuing the cash strapped retailer from the doldrums.
The retailer which shut down its flagship Ngong Hyper branch on December 4, the 30th to be closed since the cash woes plaguing the company surfaced, says that it has assembled a capable team that will help it restock, rebrand and resume full operations.
In a notice to the Capital Markets Authority (CMA) and The Nairobi Securities Exchange (NSE), CEO Mohamed Mohamed also confirmed that Uchumi has been unable to conduct the financial audit for the financial year ended June 30 as a result of distraction from court cases over the company’s solvency as well as leasing of the company’s head offices in Nairobi.
“The board and management have identified and put in place a financial restructuring team that has been mandated to identify and advise on options available to settle debts owed to creditors or restructure the company’s liabilities and present a proposal before the creditors in a timely manner,” reads the statement.
Further, the restructuring has been mandated to identify and recommend a return to normalcy plan that will enable the retailer’s business operations return to normalcy.
“In the coming weeks Uchumi will engage its auditors and legal team to plan out the processes and to confirm the recommendations of the finance experts meet. The company will assess the threshold required and adopt a sustainable plan,” reads the statement.
In addition, the management says that it has proposed for the audit exercise to commence on January 2019 after the experts make their recommendations.
After conclusion of the audit, the management promises that the audited financial results will be published on March 21, 2019.
Uchumi owes the retailers including Chandaria Industries Limited, Interconsumer Products Limited, Tropikal Brands, Equatorial Nut Processors Limited, Professional Marketing Services Limited and the Kenya National Trading Corporation Ksh471 million.