, NAIROBI, Kenya Oct 27 – Nakumatt has responded to reports circulating on social media alluding that the giant retailer is facing financial headwinds.
The supermarket chain says the business is solid despite ‘transient challenges’ triggered by a harsh operating environment.
“Like any other business operating in this market, Nakumatt Holdings has faced a number of unforeseen business challenges. These challenges range from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats among others,” says Atul Shah, MD Nakumatt Holdings.
The retailer, with 55 stores across East Africa, admits the transient challenges have impacted its operations, including cash flow.
To this end, Nakumatt says it is engaging local and international financiers willing to provide financing facilities on mutually beneficial terms.
“We are conscious that such financial restructuring remains a key imperative thus our focus on cheaper, long-term solutions, which are aligned to the overall business strategy,” said Shah, in a statement.
The chain is confident capital injection will significantly reduce the overall debt once the process is concluded in coming days.
In addition to the financing facility, which also aims at reorganizing its current credit facilities with banks and paying suppliers, the supermarket chain is responding to the challenges by reorganizing its business processes and implementing new systems, among other measures.
“We have been actively engaging our suppliers to review current supply terms. We are also undertaking a management enhancement programme that involves recruiting and retaining qualified personnel to handle specialized units including commercial, supply chain, finance and marketing.”