Uchumi faces auction over Sh67m supplier debt

Several Uchumi supermarkets #ticker:UCHM assets could be auctioned in seven days to clear a Sh67 million debt owed to a supplier.

This comes after Euromart Limited secured a court order to auction the goods to recover the debt incurred five years ago.

In a letter dated December 3, 2017, the Uchumi head office in Industrial Area and Ngong Road branch were issued the court order and attachment records obtained by the auctioneers.

At the Uchumi head office, the management roughed up several journalists Tuesday barring them from taking pictures as they were being served with the court orders.

Euromart director Joseph Kirui says they supplied a range of goods including fridges, trolleys and shelves.

“We secured a tender through the normal process in Uchumi Supermarket, and we supplied goods that we imported. We supplied five years ago and to date, I have not been paid.

READ: Uchumi targets Sh3bn land sale to boost comeback

“We have tried our best to follow up the matter but nobody has been concerned to pay us.

“So we went to court and secured a court order and a there a was a decree issued that we proceed to attach the equipment that are there at Uchumi Supermarkets,” said Mr Kirui.

“What has been surprising is that people have been appointed as managers. They come, they loot and they go. Others come, loot and go. Leaving us the clients without any payments. Now another team is in. For how long will we continue like this?”

Euromart says it will attach the property for seven days pending Uchumi’s response, failure to which they will proceed with the auction starting at the head office and then move to the rest of the branches in Nairobi.