Uchumi Supermarket (USP) has suggested potential plans to transform its Lang'ata Hyper location into a shopping center with the aim of increasing earnings.
The beleaguered retailer, nonetheless, disclosed that this expansive strategy has been temporarily halted due to a legal dispute.
"The transformation of Langata Hyper into a shopping mall is delayed because of legal disputes with a tenant named Hotspot. As it stands, the complex houses 10 tenants," USP stated at a recent creditors' gathering.
The previously dominant retailer has been facing challenges staying afloat in recent years due to financial troubles stemming from shifting customer tastes and fierce competition.
To reverse their fortunes, USP brought in Owen Koimburi on March 20, 2019. His role was to manage the execution of a Company Voluntary Arrangement (CVA)—a carefully designed strategy meant to overhaul the company’s debt structure.
Nevertheless, the recovery journey has been arduous and unstable, fraught with difficulties. At the initial creditor meeting held on May 13, 2019, the CVA proposition was turned down by the secured creditors.
The second meeting of creditors, conducted on March 2, 2020, approved the Company Voluntary Arrangement (CVA). This arrangement was later confirmed by the court on July 1, 2020.
The conversion of Langata Hyper into a complete shopping center might signal the start of a new era, bringing in new income possibilities for the firm, which has encountered monetary difficulties throughout the last ten years.
Even though Uchumi has seen a substantial drop from its previous leadership in retail, Lang'ata Hyper continues to be an important component of its business operations.
The firm has been running the Uchumi Lang'ata Hyper branch concurrently with the Unicity location close to Kenyatta University.
Provided by SyndiGate Media Inc. Syndigate.info ).
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