The financially troubled retailer is in the last stages of disposing of the land, expected to fetch up to Sh2.8 billion.
The funds will go into restocking of its 12 branches that are now almost empty.
The partially State-owned retail chain is also looking to raise funds from its other shareholders, moving away from its dependency on Treasury’s bailout.
Troubled retail chain Uchumi supermarkets #ticker:UCHM expects to complete the sale of its Kasarani land in one week to settle part of supplier debts and negotiate the resumption of supplies.
The chief executive officer Mohamed Mohamed on Tuesday said the retailer is in the last stages of disposing of the land, expected to fetch up to Sh2.8 billion.
The funds will go into restocking of its 12 branches that are now almost empty. The partially State-owned retail chain is also looking to raise funds from its other shareholders, moving away from its dependency on Treasury’s bailout.
“We expected the Kasarani Land deal to be sealed last week but the agreements and all the paper work are ready and the deal should go through in a week’s time. The expected heavy cash injection will help us to cover operating expenses and to have our branches fully restocked and operational,” said Mr Mohamed in an interview.
Uchumi is also launching a real-time payment system in a bid to woo suppliers who have suffered delayed payments in the past.
The retailer owes suppliers Sh3.6 billion. “The system will be rolled out to other branches after about four weeks of testing. The technology will also help Uchumi to ensure that it is well compensated by its partners who include franchisees and the specialty shops,” he said.
Uchumi last month picked the Lang’ata Hyper branch to kick-start a new franchise model through which big brands allow other operators to use its name in a certain market in return for royalties.
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