Nakumatt supermarket, one of country’s biggest retail chains, on Thursday, October 27, said it seeking new capital injection from unnamed investors to boost its financial muscle amid speculations it is flat broke.
Managing director at Nakumatt Holdings, Atul Shah, told the press on Thursday the new move will enable the giant retailer get back on its solid feet and keep in check backlash from its suppliers.
It is said that Nakumatt is owned by a consortium of investors including billionaire businessman Harun Mwau.
”Like any other business operating in this market, Nakumatt Holdings has faced a number of unforeseen business challenges. These challenges range from a depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats among others,” reads part of the statement as quoted by Tuko.
Reports by a section of the press had previously suggested that Nakumatt urgently needs KSh 5 billion to fund its operations. The retail chain boasts 55 branches spread across East Africa.
“We have been actively engaging our suppliers to review current supply terms. We are also undertaking a management enhancement programme that involves recruiting and retaining qualified personnel to handle specialized units including commercial, supply chain, finance and marketing,” the statement also said.
This is however not the first retail chain to find itself in a tussle with its all-important suppliers. Uchumi supermarkets and Tuskys have also recently found themselves in the exact similar situation.
Last year, major suppliers sought help from the Kenya Association of Manufactures saying the prolonged delay in payments are affecting their productions.