Uchumi Uganda branch raided over Sh5m debt

Court bailiffs on Monday raided the main branch of Uchumi Supermarkets in Uganda.

The bailiffs stormed Uchumi Garden City branch after securing a court order, aiming to seize the company’s properties.

According to the court bailiffs from Push and Recovery Agency, Uchumi owes Ugachick, one of the store’s major chicken suppliers, more than USh185 million (Sh5.2 million) for products supplied between March and July.

As a result, Uchumi was dragged to the Commercial Court for failure to pay.

However, attempts to seize the supermarket’s assets did not materialise as the landlord of Garden City, where the store is housed, stopped the bailiffs with the help of security guards.

“These people have done a lot of damage to the place. They should have come first to the management and sat on a round table to settle the matter. Let us wait for tomorrow because they said they are coming back,” said Mr Amit Talreja, the Garden City landlord.

The court bailiffs who spoke to the Daily Monitor, which is part of the Nation Media Group stable of publications, said they were acting under a court order and were sent to recover debt owed to Ugachick by the supermarket.

“Our court warrant is still valid. Although they have stopped us from taking the property, we are going to execute it again with the help of police because no one is above the law,” George Tumusiime, one of the bailiffs said.

The management of Uchumi and Ugachick declined to comment on the development.

The Daily Monitor understands that the supermarket has failed to clear the supplier fees for goods delivered thus causing the company financial loss.

The struggling chain store, which has been running six outlets in Uganda, has seen three of its branches closed over non-performance and tight competition from the seemingly saturated retail market and informal traders.

The chain store has previously had problems with suppliers over an accumulated debt of more than USh33 billion (Sh927 million) spread across its network.