MORE TIME

Court grants Uchumi 30-day extension to get affairs in order

The High Court’s ruling is meant to give the retailer additional time to involve all interested parties.

In Summary

• In May, creditors agreed to take a 70 per cent cut on the struggling retailer’s Sh3.6 billion debt.

Uchumi Supermarket outlet
Uchumi Supermarket outlet
Image: courtesy

Uchumi Supermarkets Plc’s recovery plan is still in progress after the High Court (Commercial and Tax Division) gave the retailer 30 more days to amend the Company Voluntary Agreement (CVA), the retailer’s blueprint to return to normalcy.

The High Court’s ruling is meant to give the retailer additional time to involve all interested parties.

Under the CVA Uchumi will embark on the planning of the partial debt offset within the timelines as stipulated in the CVA.

As part of the CVA the retailer will leverage on technology, pursue beneficial partnerships and review its business model while managing its costs.

The struggling retailer will also begin franchising select stores and embark on a digital transition to move into a more convenient store model

Owen Koimburi appointed as the retailer’s supervisor as per the Insolvency ACT 2015 will oversee the implementation of the CVA.

In May, creditors agreed to take a 70 per cent cut on the struggling retailer’s Sh3.6 billion debt.