Uchumi Supermarkets has been given a reprieve from eviction and the sale of its strategic assets following an injunction issued by the High Court.
In a ruling that was delivered by Commercial and Tax Division Judge Lady Justice Mary Kasongo gave an injunction against eviction, distress for rents and the sale of its land holdings pending determination of an insolvency petition by one of its creditors.
“That after inter alia hearing this Honourable Court be pleased to order a temporary injunction against any eviction or the interference of the quiet enjoyment of Uchumi Supermarkets Plc at all and any of the premises it occupies pursuant to a lease, tenancy agreement, license and/or controlled tenancy pending the hearing and determination of Insolvency Petition No 25 of 2018,” said Lady Justice Kasongo in her ruling.
The ruling in effect means Uchumi Supermarkets has been given a reprieve from eviction of its remaining outlets as well as its headquarters, which is owned by Kenya National Trading Corporation (KNTC).
Additionally, the ruling will give Uchumi Supermarkets enough time to execute its turnaround strategy that includes the franchising model, cost leadership strategies, going digital as well as the sale of assets.
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Uchumi Supermarkets reiterates that it is well aware of its obligations towards its suppliers, employees and other stakeholders and is currently engaging all these groups on the progress its making.
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