Uchumi Supermarkets is in trouble again and I am really not surprised. Rather than repeat the remarks I made months ago, I will re-publish the entire post here complete with the date;
Saturday, July 22, 2006
Business Special: More Trouble Ahead For Uchumi
In all the hype being generated by the media and show of goodwill towards the Uchumi Supermarkets rescue efforts, alarm bells are beginning to ring loudly in my ears.
I really started to get nervous when I heard about the latest move by the new supermarket chain management to raise extra funds from shareholders. In the plan, shareholders will lend a minimum of Kshs 10,000 each to Uchumi. In fact the plan was to initially get a minimum of Kshs 100,000 from each shareholder. Shareholders quite rightly pointed out that this was too much for most of them.
What is going on here?