Agha Khan Walk Branch
Uchumi supermarket which has been struggling for a turn around shut down one of its remaining branches and the only one in Nairobi CBD, the iconic Agha Khan walk branch. This comes after the new management promised investors a turn around barely a year ago where the management was given a restructuring leeway by commercial banks on its debt. The restructuring involved a write off following the lenders acceptance of the retailer's company voluntary agreement(CVA).
Uchumi was owing creditors and suppliers Kshs 3.9 Billion which was way above its assets of Kshs 1.4 Billion as at June 2018. It is interesting that CMA and the NSE have not suspended the stock since trading in the stock might be as good as defrauding unsuspecting investors.
We hope that CMA and the NSE will advise investors on Uchumi stocks because investors would expect the supermarket to remain open and take advantage of the festive seasons as part of its turn around strategy. In the meantime investors should be weary about Uchumi stocks as the supermarket does not give any glimmer of hope about its revival.
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