Taj Mall in Embakasi, Nairobi. Uchumi Supermarket’s Taj Mall branch was closed in March. PHOTO | FILE
Uchumi Supermarket’s Taj Mall branch stock survived the auctioneer’s hammer after its management struck an agreement with its landlord.
The troubled retailer, which will Wednesday meet Trade principal secretary Chris Kiptoo for talks with its owners and creditors to try and keep its doors open, announced that the seized stock and equipment will not be auctioned.
The retailer will be allowed to sell the stock to repay Sh50 million rent arrears accumulated over 10 months.
“Taj Mall has called off the auction of Uchumi Supermarket goods, which was scheduled for tomorrow (Wednesday) following an amicable settlement,” the Nairobi Securities Exchange-listed retailer said in a statement.
Taj Mall proprietor Ramesh Gorasia said in an interview that Uchumi offered postdated cheques that will be cashed in every week until the end of June.
“We have agreed that they reopen to clear the sale and will be giving us Sh975,000 every week to the end of June,” said Mr Gorasia. Taj Mall seized Uchumi’s stock and advertised their sale and appointed Moran Auctioneers as bailiffs to recover the debt.
The branch was closed in March. Mr Gorasia said Uchumi was even considering the possibility of extending its tenancy at Taj Mall subject to approval by its board.
“They have even said that if sales are doing well they may continue to operate at the site but the matter is still under discussion with the board,” he said.
In March this year Uchumi announced that it was shutting down loss-making outlets located in Nairobi’s Taj Mall, Embu, Eldoret, Nakuru and Kisii.
As of June last year, Uchumi had 37 outlets and 4,500 workers spread across East Africa, with a majority of them in Kenya. The retailer now has about 20 branches operating across the country.
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