Struggling Uchumi it’s loses headquarters

City landlord has kicked out the retail chain Uchumi Supermarkets’over its failure to pay millions of shillings in rent arrears.

Uchumi Supermarket troubles have deepened after it was evicted from its Nairobi Industrial Area headquarters.

It has emerged that Uchumi’s top management has not accessed the premises since October 2 when the Kenya National Trading Corporation (KNTC), the building owner, locked them out.

The lockout has seen Uchumi file two different suits in court for orders forcing KNTC to grant the retailer’s employees access to the premises.

Uchumi claims that the decision to deny its managers access is against the October 2 court order that suspended all judgments, decrees, attachment of properties, or distress for rent against it.

“The continuing closure of the company’s headquarters is severely hampering our operations. Our servers remain inoperative, effectively preventing the business from tracking and effecting payments as and when they fall due or carrying out other administrative duties that are critical to the company as a going concern,” Uchumi says in its petition of October 16.

There is no indication of how much money Uchumi owes KNTC, which is yet to respond to the petition.

The High Court on Wednesday directed Uchumi to serve KNTC and go back for directions on October 22.

Uchumi claims that locking up its headquarters is also hampering its participation in a winding-up petition filed by Githunguri Dairy Farmers Co-operative Society last month and frustrating recovery efforts.

The firm says about 50 private guards have been deployed to block access to the offices and the gates are locked.

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