Uchumi supermarket has announced a raft of new measures in a bid to set the retail chain back on track.
The chain store has embarked on a cost-cutting exercise that will include closing down branches and laying off staff.
Addressing investors in Nairobi today, acting Chief Finance Officer, Sam Oduor, said Uchumi has negotiated a 500 million shillings loan from KCB Bank to tide it over, as it sells off assets, including land in Nairobi valued at around 2 billion shillings.
According to a Nation report the retail chain has commenced the process of selling a 20-acre piece of land it owns at Kasarani area in Nairobi -priced at over Sh2.2 billion- in plans to settle outstanding debts to suppliers.
By mid last month the retail chain reportedly owed suppliers Sh2.3 billion, but it approached Kenya Commercial Bank for a Sh500 million loan to clear some of the dues.
See: Uchumi Supermarket Seeks Ksh 500M Loan to Pay Suppliers
Oduor accused the previous management of not properly assessing new outlets and of failing to keep an eye on whether they made a profit.
The acting CFO said the organisation was reviewing its internal operating processes and procedures in order to seal loopholes that led to revenue leakages, KBC reports.
Oduor also announced that the board had suspended expansion to facilitate review of the profitability and potential of each branch in the network.
The company fired its chief executive, Jonathan Ciano, and its finance chief, Chadwick Omondi Okumu, on June 15 and ordered a forensic audit to determine why it was bleeding cash and falling behind on supplier payments.
See also: Uchumi Supermarket CEO Sacked Over Negligence and Misconduct
