Uchumi’s fate hangs on creditors meeting
It is D-day for Uchumi as it meets creditors to decide on the retailer’s fate.
The oldest Kenyan retailer will need an endorsement from its suppliers to accept a deal that will give them a haircut on their debt to try and save Uchumi.
Uchumi, whose stock touched an all-time low of 29 cents at the Nairobi Securities Exchange on Friday, will need a miracle to recover.
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It requires the suppliers to resume filling its shelves even as it expands its venture to leasing out stores to third parties.
Uchumi Supermarkets hopes to convince them to take a 70 percent cut on their debt as the windfall of the sale of Kasarani land.
The land has however been occupied by the Kenya Defense Force which complicates its intended sale to Jewel Complex Limited.
