Choppies Enterprises Kenya Ltd and the Association of Kenya Suppliers (AKS) have signed an agreement under which all outstanding supplier payments would be cleared.
The agreement which further cements its relationship with its suppliers will see the retailer clear about Sh600 million.
It comes as a boost to retailer as it moves to revamp its stores after a recent short supply which had raised concerns over its stability in the country.
The management which has affirmed the retailer's seriousness to the Kenyan market has committed to be paying all suppliers on time.
“We recognize how important prompt and on time payments to suppliers are to the economic health of the sector and are pleased to confirm that Choppies are now able to adhere to all agreements,” Choppies Kenya Management stated.
“This is an important demonstration of our commitment to do the right thing and will help us foster even stronger partnerships with our suppliers across the sector,” the management added, dismissing media reports that it was closing shop.
The recapitalisation process is being supported by local shareholder-Export Trading Group (ETG).
“Choppies Kenya assures its customers, employees and suppliers that the business has been recapitalised, and the required funds have, and are being injected to ensure normal operations resume,” it said, adding that long-term plan are in place to expand in other regions of the country.
“Expansion in the Kenyan market remains intact and we look forward to building a retail chain that will serve all its stakeholders,” the retailer said in a statement.
