Uchumi saved from the auctioneer’s hammer
Uchumi has been granted stay orders stopping landlords from kicking them out and creditors from auctioning the retailer.
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The supermarket chain that has been reduced to skeleton outlets after it lost several stores to angry landlords and auctioneers is facing a winding-up suit by Githunguri Dairy Farmers Co-operative Society.
This is the second time in two years where creditors have sought to shut the premier supermarket in the country.
Uchumi sought protection of the 2015 insolvency act which allows firms to plead for protection from creditors while it tries to salvage the business.
Yesterday High Court Judge Mary Kasango stopped United Bank of Africa (UBA) from selling its Langata property LR No. 209/12593.
In its bid to recover, Uchumi had hoped to give out the supermarket on the land to a private firm to operate it as a franchise while the retailer earns royalties.