Uchumi Supermarkets Plc has suspended its Annual General Meeting “ to allow for negotiations with a potential investor’.
Enid Muriuki, the Company Secretary in a notice said “Once the negotiations are concluded, a new date for the AGM will be agreed and a formal notice and agenda will be published within the statutory requirements.”
In August, the retailer announced it will receive Ksh 3.5 Billion through sale of shares to investors to mark the completion of its recovery strategy.
The Government also plans to exit from Uchumi Supermarkets (NSE: UCHM) once the retailer stabilises under the ongoing restructuring plan.
The National Treasury currently holds a 14.67 percent stake in the firm making it the second-largest shareholder after Jamii Bora Bank which holds 14.90 percent.
Uchumi cut their losses by 40 percent in the 2017 financial year to KSh1.7 billion compared to KSh2.8 billion loss in 2016 attributed to improved cost management.
Expenses went down by 42 percent in the period under review from KSh3.6Bn in 2016 to KSh2.1Bn in 2017 while the cost of sales hit KSh2.5bn from KSh6.4bn in 2016.
“The board and management continued to implement initiatives aimed at recovery and turnaround in performance including streamlining operations, strengthening management, and implementing improved operational processes,” Management said.
Currently, it had temporarily closed all its Nairobi branches to restock shelves. The retailer’s management said in a statement that normal operations in the affected outlets would resume Thursday after the completion of the process.
The restocking process by the retail store is expected to last 90 days across the country.
For all cynics of Uchumi let me reassure you that stocks will be returning to our stores by next week. #loveuchumi
— Andrew Dixon (@Uchumi_COO) December 8, 2017
Delighted to confirm our Uchumi stores will be re-stocked this week. To facilitate this our Nairobi stores will be closed on 13th Dec and reopened on 14th. We look forward to welcoming our customers back to Uchumi.
— Andrew Dixon (@Uchumi_COO) December 12, 2017
“Uchumi Management wishes to notify the general public that the Nairobi branches will remain closed on December 13 as staff undertake restocking of our shelves. Normal business operations will resume on December 14.” We are grateful for the valued support of our suppliers in the restocking process. This has enabled us to ensure we can have a full range of popular products available,” reads the statement.