Uchumi Supermarkets is seeking a Company Voluntary Agreement
The Commercial and Tax Division of the High Court has granted Uchumi supermarkets an additional 30 days to conclude talks with secured creditors on agreeing to the Company Voluntary Agreement (CVA).
So far, Uchumi has managed to get KCB, Co-operative bank and ICDC to endorse the CVA under various terms.
Uchumi Supermarkets CEO, Mohammed Mohammed has said the talks with the remaining creditors, UBA and the government are ongoing and are expected to be finalized before the next date of mention.
The Company Voluntary Arrangement (CVA) provides a proposed review of the
Restructuring of the current debt as well as the strategic overview of the business operations of the retail chain that has been undertaken by the board and management of Uchumi PLC and other experienced consultants including
Mohammed added that whereas Uchumi and the retail sector is facing challenging times due to reducing purchasing power and rising operational costs, the CVA has taken these factors to present a clear blueprint that will better shield the business from these risks. The Uchumi boss has said the CVA presents the best proposal to ensure that all our creditors including suppliers, lenders, staff and other service providers are able to receive