Six of the seven suppliers of Uchumi supermarkets who went to court seeking to have the retailer closed down over non-payments of debts have agreed to withdrawal their court case.
This follows a series of successful negotiations between the retailer and the suppliers.
The petition had seen Uchumi locked out from accessing an advance loan from UBA-Kenya of up to Sh. 300 million.
On the Business Centre program hosted by TerryAnne Chebet on Citizen TV, Uchumi CEO Mr.Julius Kipng’etich had indicated that Uchumi was close to striking a deal with the suppliers. He further noted that winding up the case would have benefited none of the suppliers as Uchumi wouldn’t have had the ability to repay any of its outstanding debts.
The petition withdrawal comes a week after other suppliers agreed to have half of the Sh.3.6 billion debt Uchumi owes them converted into equity. Currently, Uchumi’s estimated total outstanding debt stands at Sh. 6.1 billion.
