Latest closure leaves Nakumatt with single branch in Tanzania
Sunday December 10 2017
Former East African Community secretary-general Richard Sezibera (left) with Nakumatt MD Atul Shah at the retailer’s branch in Arusha, Tanzania. FILE PHOTO | NMG
In Summary
Nakumatt was on Friday forced to close its store following rent arrears of an unknown amount.
By Daniel Mjema and Mugambi Mutegi
Nakumatt Supermarket’s presence in Tanzania has been reduced to a single outlet after the struggling retailer was evicted from a building in Moshi for failure to pay rent for over a year.
The retail chain was on Friday forced to close its store following rent arrears of an unknown amount.
It is the retailer’s third store to shutdown in Tanzania in as many months. Nakumatt’s remaining branch in Tanzania is located in Dar es Salaam.
Nakumatt, which is battling to keep its heavily-indebted business operational amid a push by creditors for its liquidation, in October closed its outlet in Dar es Salaam also due to rent arrears and failure to adequately stock the store. Last month, the family-owned business closed its Arusha branch.
Thadey Mariki, the estate manager of Erncon Holdings Ltd, Nakumatt’s landlord, confirmed the eviction but declined to state how much the financially-strapped retailer owes.
“We had to other option but to evict them. They haven’t paid rent for more than a year now,’’ he said, adding that the retailer was inconveniencing Erncon business plans
Nakumatt was expecting a six-week phased injection of Sh7.7 billion from an unnamed private equity fund beginning March, but failure to secure the funding has caused widespread product stockouts and seen it delay employees’ pay.
READ: How Nakumatt found itself in a perfect storm
The retailer’s financial woes have worsened as the year progressed with several outlet closures in Kenya and Uganda, leaving Rwanda as the only market seemingly immune from the financial meltdown.
Nakumatt had planned to merge with its rival Tuskys in order to salvage the ailing business, but the Competition Authority of Kenya (CAK) recently rejected this proposal.
The Nakumatt-Tuskys deal is also facing objections from a key Tuskys shareholder.
“We are being evicted. I am not at the scene but I have just been informed that the branch is being closed,” Alfrick Milimo Nakumatt Moshi’s branch manager, said during a telephone interview.
In the headlines
Latest closure leaves Nakumatt with single branch in Tanzania
MY TAKE
Don't joke with competitive Tanzanian market! How many Kenyan companies have so far closed the shop? The next is Brookside dairy! I hear KCB n Bidco r in their deathbeds! Poleni sana Majirani, ndo ukubwa endeleeni kuyaleta msivunjike moyo na tamaa pia (God should have mercy to whoever deceived Kenyans that their merchandise r liked within Tanzania) [emoji23] [emoji115]!
Eti competitive Tanzanian market, hehehe, unajua competitive ni nini???? more than 30% of Kenyans shop in formal retail shops, In tanzania its less than 5%???? which of these markets do you think has more competition??? If Nakumatt loss was only in Tz then atleast your assertion would have been probable, but its making losses everywhere meaning its not about competition, its more about poor management..
Anyway in other developments, Uchumi will be back under new management, It will reach Tz long before any Tanzania supermarket is big and bold enough to cross the border....
Uchumi to start refilling empty shelves today
Dec. 14, 2017, 12:30 am
Uchumi Supermarkets yesterday closed down its branches in Nairobi for restocking, after receiving Sh700 million from the government early this month.
In a public notice, the listed retailer, whose shelves have been running almost empty for the past two years, indicated that the stores will be opened today.
“The management wishes to inform the public that Uchumi Nairobi branches will remain closed on December 13, 2017 for restocking our shelves. All our staff will look forward to welcoming our valued customers back to our stores as we re-open for business on December 14, 2017,’’ read the statement.
The acting head of marketing at Uchumi Supermarkets Henry Bett on Tuesday told the Star that the retailer received Sh700 million on December 1, and that the cash will go towards restocking.
Even so, the retailer is silent on the names of suppliers and the formula on how to divide the cash, with inside information indicating division in the board since the amount was received. It has however promised customers to expect a wide array of grocery, liquor products, household items and a fantastic bakery.
Early this year, the cash-strapped retailer received Sh500 million from the government which it used to clear accumulated debts owed to suppliers as part of a Sh1.8 billion bailout from the state.
The National Treasury has challenged it to stabilise the Kenyan business before the remaining Sh600 million meant for re-entry into the Uganda and Tanzania markets is released.
Uchumi Supermarkets yesterday closed down its branches in Nairobi for restocking, after receiving Sh700 million from the government early this month.
In a public notice, the listed retailer, whose shelves have been running almost empty for the past two years, indicated that the stores will be opened today.
“The management wishes to inform the public that Uchumi Nairobi branches will remain closed on December 13, 2017 for restocking our shelves. All our staff will look forward to welcoming our valued customers back to our stores as we re-open for business on December 14, 2017,’’ read the statement.
The acting head of marketing at Uchumi Supermarkets Henry Bett on Tuesday told the Star that the retailer received Sh700 million on December 1, and that the cash will go towards restocking.
Even so, the retailer is silent on the names of suppliers and the formula on how to divide the cash, with inside information indicating division in the board since the amount was received. It has however promised customers to expect a wide array of grocery, liquor products, household items and a fantastic bakery.
Early this year, the cash-strapped retailer received Sh500 million from the government which it used to clear accumulated debts owed to suppliers as part of a Sh1.8 billion bailout from the state. The National Treasury has challenged it to stabilise the Kenyan business before the remaining Sh600 million meant for re-entry into the Uganda and Tanzania markets is released.
Meanwhile, Uchumi is likely to nail the Sh3.5 billion investor before the end of March next year, if a notice postponing its Annual General Meeting, which had been slated for December 20, 2017, is anything to go by.
In a public notice issued yesterday, the retailer, whose plans of completing the restructuring plan before the end of this year were hampered by the protracted presidential election cycle, indicated that it is likely to hold the AGM before March next year after completing negotiations with the potential investor.
“The board anticipates the AGM will be held before March 31, 2018,’’ read the statement.
The news of restocking and the possibility of nailing a new investor is likely to warm the hearts of disgruntled shareholders who have not received dividends for the past three years due to the loss-making nature of the firm.
Uchumi shares however closed unchanged at Sh3.50 at the Nairobi Securities Exchange, an indication that investors are still skeptical.
Uchumi to start refilling empty shelves today
UCHUMI SUPERMAKETS IS FULL AGAIN
Uchumi today posted a photo on Twitter showing the progress achieved in its restocking programme that saw the outlets earlier closed for the day. “From tomorrow our customers will have a reason to smile…#UchumiRestocking [HASHTAG]#UchumiLoading[/HASHTAG] #UchumiNewLook…,” it tweeted.