Uchumi Supermarkets has commenced the process of verifying and clearing all outstanding debt it owes suppliers of goods and services.
According to the firm, the debt to be cleared will be those incurred before 2nd March 2020
Uchumi has opened an online portal for trade and services creditors to register their debts as part of the retailer’s implementation of the Company Voluntary Agreement (CVA).
“The CVA which was approved by the High Court directs that we verify all old debts through a transparent and sustainable process and we are asking all suppliers to register their debts within the next three weeks,” said Uchumi Supermarkets CEO Mohamed Mohamed.
Mohamed says the exact amount of supplier debt will be known once the verification process is completed.
The CVA, the retailer’s blueprint for the return to profitability, provides a proposed review of the restructuring of the current debt as well as the strategic overview of the business operations of the retail chain that has been undertaken by the Board and Management of Uchumi Plc and other experienced consultants including Mr. Owen Koimburi who was appointed as the Supervisor on March 2nd, 2019.