More job losses are looming at troubled supermarket chain Nakumatt after the retailer shut down a further two branches.
The
retailer, whose operations have come under strain due to its huge debt,
has closed its Bungoma and Busia branches in Western Kenya.
A check at the two branches showed they remained shut Monday.
A check at the two branches showed they remained shut Monday.
The
retailer’s managing director Atul Shah did not explain the closures
when reached for comment but promised to issue a statement on the matter
this week.
Nakumatt has over the past one year shut
down a number of non-performing outlets in Kenya, Uganda and Tanzania as
the family-owned retailer battles hefty financial obligations.
The
troubled retailer’s Mlimani City store in Dar es Salaam was last Monday
closed after failing to comply with contractual requirements, including
failure to pay rent.
It was last week forced out of
Junction Mall in Nairobi over huge debts but it has gone back to court
to fight for its tenancy at the upmarket shopping complex.
In July, Nakumatt shut down three branches in Uganda, citing financial restructuring.
Locally,
the retailer has also closed outlets including its Bamburi Branch in
Mombasa; Lunga Lunga in Nairobi; Thika Road Mall along Thika Road, Next
Gen on Mombasa Road and Westgate in Westlands, Nairobi.
Nakumatt is yet to provide a tally of the job losses so far.
The
company in May announced plans to close its poorly performing branches
in Kenya and Uganda as part of cost-cutting measures aimed at saving the
retailer Sh1.5 billion annually.
The first store to be shut down in May was the Haile Selassie Branch located at the Kenyatta University Plaza, Nairobi.
Merger
talks with rival Tuskys are seen as offering light at the end of the
tunnel since the two retailers have written to the competition authority
on their intentions.
No comments :
Post a Comment