Uchumi supermarket is on the verge of collapse due to finance constraints that the home-grown brand has been facing.
Over the past few years, the supermarket has closed a number of branches, with those remaining struggling to fill shelves, and attract customers.
The supermarket is now staring at more trouble after UBA bank, announced plans to sell Uchumi Hyper in Lang'ata, over unpaid debt.
Following the bank's announcement, the retailer wrote to the government seeking to have implementation of the Company Voluntary Arrangement (CVA), to give it a boost as it seeks to resume operations.
“Only the secured creditors will benefit. GoK (Government of Kenya) is also at risk of having its secured amount reduced in the event that UBA proceeds to sell Lang’ata Hyper at Force Sales Value,” reads part of the letter.
Uchumi Chief Executive Mohamed Mohamed has raised concern over its woes, and urged the government to come to its rescue, before it is too late.
A few years ago, Uchumi was one of the biggest retailers in the country, but started facing financial woes in the late 2000s.
If the issue is not amicably addressed, the supermarket could go under, just like giant retailer Nakumatt.