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Kenya

Uchumi postpones AGM to allow negotiations with investor

The retailer has also announced that it will be restocking its branches from Thursday/FILE

NAIROBI, Kenya, Dec 13 – Uchumi has postponed its Annual General Meeting (AGM) from December 20, 2017, to a later date to allow negotiations with the potential investor.

The supermarket says once the negotiations are concluded with the investor, a new date will be set.

The board, however, anticipates that the AGM will be held before 31st March 2018.

The move comes even as Chief Executive Dr. Julius Kipngetich resigned last week after two years attempting to turn around the struggling retailer.

He left having secured a strategic investor in a deal expected to bring back the retailer back on its feet.

Discussions are still ongoing with the strategic investor who will inject Sh3.5 billion into the retailer which will partly plug the Sh5 billion debt hole the supermarket owes suppliers and financiers.

The government is also expected to release Sh700 million to the retailer as part of a bailout loan of Sh1.2 billion after it gave the retailer Sh500 million.

The retailer has also announced that it will be restocking its branches from Thursday.

“Customers should expect a wide array of grocery and liquor products as well as household items and a fantastic bakery,” the firm said.

Uchumi Supermarket cut their losses by 40 percent in the 2017 financial year to Sh1.7 billion compared to Sh2.8 billion losses in 2016 attributed to improved cost management.

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Expenses went down by 42 percent in the period under review from Sh3.6Bn in 2016 to Sh2.1Bn in 2017 while the cost of sales hit Sh2.5bn from Sh6.4bn in 2016.

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