Daily Monitor Uganda
The increasing number of lawsuits against Uchumi Supermarkets (Uganda) Ltd has prompted the beleaguered company to petition the High Court to wind up its operations to safeguard its remaining assets from creditors.
If successful, the liquidation petition filed on December 7, 2015 at the High Court would see the company’s assets placed in the custody of the Attorney General as the official receiver.
Several creditors have execution orders while other cases are pending before different courts. The unsettled dues include money owed to suppliers, landlords and employees who will be rendered jobless.
Also Read;Uchumi To sell ‘Majority’ stake to strategic Investor for Ksh 5Billion
The board of directors of Uchumi Supermarkets Ltd, the majority shareholder in Uchumi Supermarkets (Uganda), blames low sales, stocks and fraud for the challenges that have rendered the Uganda operation commercially unviable.
“Your petitioner has had working capital constraints that have resulted in delayed payments to suppliers. As of July 31, 2015, your petitioner had outstanding payables amounting to Shs8.8b ($2.62m),” said company secretary John K. Wambugu, in an affidavit to the court.
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