Dead End: Choppies Puts All Assets In Kenya On Sale

Choppies supermarket has announced that it has put all its assets on sale and is ready to leave a “distressed” Kenyan market.

The Botswana based retailer has been facing challenges in the recent days that forced it to close several outlets in Kenya due to stock shortage.

Following the footsteps of Nakumatt and Uchumi, Choppies misery has been brought about by financial crisis due to embezzlement of the fund by the top management.

Choppies was also caught up in a crisis where several employees had not received their salaries for a couple of months. Suppliers were not left out in demanding their pending bills.

In a statement, the Kenya Union of Commercial, Food and Allied Workers (KUCFAW) Secretary-General, Boniface Kavuvi said that Choppies workers have not been paid in full to date. Company has also failed to pay suppliers for a while and that explains the closure of some branches and empty shelves on others.

Choppies had its woes at the peak last year when Botswana Stocks Exchange (BSE) and Johannesburg Stocks exchange (JSE) stopped trading its shares. This came after the retailer had failed to release financial results at the end of June 30, 2018.

The retailer’s shares have since dropped by 60 percent leaving it struggling and clinging on a string.

Another challenge struck Choppies in May this year when the members of the board unanimously agreed on suspending the Chief Executive Officer, Ramachandran Ottapathu.

The chain store was really doing well with operations in seven African countries but currently has only 48 stores operating from 260.

It’s recently opened outlets in Zambia and Mozambique but the firm reported that it was still operating below break-even in the new markets.

In Kenya, Choppies took over Ukwala supermarkets in 2016 and has barely survived for four years in the Kenyan competitive environment.

Having about six outlets in Kisumu and six others spread across different counties, Choppies has decided to throw in the towel and sell all assets and is planning to leave the Kenyan market soon.