Uchumi supermarket. [Photo/capitalfm.co.ke]Uchumi Supermarkets is closing in on a strategic investor who is expected to inject Sh3.5billion into the company from next month to boost its turn-around strategy.
The retailer’s acting chief executive, Mohamed Ahmed Mohamed, said the company has settled on undisclosed strategic investors who have expressed interest in partnering with the chain.
The investment comes even after the retailer confirmed the receipt of Sh700 million from the government, which is part of the Sh1.2 billion the Treasury had offered to Uchumi as part of a bailout loan. “Negotiations are still ongoing.
There’s a positive progress in which we expect to have the funds by January next year.
The NSE-listed firm seeks to restock all its 20 stores by this weekend in a move to encourage customers ahead of busy December holidays.
“This is another successful chapter in the books of Uchumi, we are grateful for the progress that has seen the brand weather the storm.
“More than 90 percent of our suppliers have returned, we are expecting the others to come back as well. Things are returning to normalcy, we have also started paying our staff,” said Dixon, adding that the company has not ruled out the possibility of re-entering regional markets after the completion of Kenya’s revival plans.
“We will only pursue the idea after we are done with Kenya which will be based on good business practice,” he said.
The retailer has put on hold its Annual General Meeting (AGM), initially slated for December 20 as it seeks to firm up negotiations with the potential investor.
“We look forward to welcoming our returning and new customers in this first step in the resurgence of the Uchumi brand. The board anticipates that the AGM will be held before March 31, 2018,” read a statement from the firm.