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Creditors drag Uchumi to High Court over bankruptcy claims

By Benon Nsubuga

Added 22nd March 2016 12:04 PM

In November last year, all five branches of Uchumi were shut down and staff was laid off after accruing a lot of debts from suppliers

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Uchumi Garden City branch was closed by bailiffs acting on behalf of Ugachic over a debt of sh185,107,800.

In November last year, all five branches of Uchumi were shut down and staff was laid off after accruing a lot of debts from suppliers

The creditors of Uchumi Supermarket have decided to lodge an application in the High Court challenging a request by the directors of the stricken retail chain to declare them bankrupt after failing to clear their debts.

Uchumi has been accused of not paying its suppliers and employees.

In November last year, all five branches of Uchumi were shut down and staff was laid off after accruing a lot of debts from suppliers.

The executive director of Private Sector Foundation Gideon Badagawa said they have agreed with Uchumi’s creditors to ask for an objection to the application.

Badagawa said they are taking action because they have all the evidence that Uchumi has the capacity to clear their debts.

 ormer employees of chumi stormed the mployment ervice ureau offices demanding to be compensated in ctober 2015 Former employees of Uchumi stormed the Employment Service Bureau offices demanding to be compensated in October 2015.

 

“We have all the evidence that every operation that has been done in Uganda is actually based in Kenya. All these cheques are being signed by people based in Kenya” Badagawa.

Someone owns Uchumi here in Uganda but based in Kenya and we want to lift the veil so the search is on to know who the owner is” he added.

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