Following a series of speculative social media posts, Nakumatt Holdings has come out to say that “despite a number of unforeseen business challenges”, they are undertaking reforms and seeking financing that will stabilize their operations across East Africa.
“We wish to reassure all our stakeholders that the business is solid despite transient challenges triggered by a harsh operating environment,” said a statement from Nakumatt Holdings on Thursday.
Retail-chain Nakumatt supermarket said the challenges that they have faced range from a “depressed economy, higher operating costs and extraneous factors including enhanced risk management due to prevailing security threats among others. As expected these factors have impacted on operations on many fronts, including cash flow.”
@Nakumatt if you are closing shop in Uganda, let us know. Shelves are empty. How can you not have Coca-Cola products? Seriously???
— Nada Andersen (@NadaAndersen) September 17, 2016
The company, that has 55 branches across East Africa, said in their statement that they are currently engaging a number of local and international financiers “who have expressed an interest in providing financing facilities on mutually beneficial terms.”
“With the ongoing financial re-engineering engagements focused on accessing a significant capital injection we are confident that the overall debt will further reduce once the process is concluded in coming days,” the statement said.
— Charles Onyango-Obbo (@cobbo3) October 27, 2016
FULL NAKUMATT STATEMENT