In a press release over the weekend by Knight Frank, it was announced that Nakumatti had closed three branches in Uganda.
“Knight Frank Uganda regrets to inform our loyal clientele that on 28th June 2017, Nakumatti stores at Acacia Mall – Kololo, Village Mall – Bugolobi and Victoria Mall – Entebbe were closed,” a statement from Knight Frank Uganda Head of Retail Mac du Toit reads.
In April this year, Nakumatt confirmed that its Katwe branch at Muganzilwaza Plaza had been closed due to a rent dispute. It was later confirmed that the landlord demanded over Shs 297m.
In June, Nakumatt Mbarara also got problems. The landlords, Mpororo Group Ltd (owned by minister Bright Rwamirama and his wife Florence filed a suit in the commercial court demanding to Nakumatti to pay them $569,339 (about Shs2bn) going as far back as 2013.
The supermarket chain has faced tough times over the past year with sparsely populated shelves after most suppliers stopped dealing with them over non-payment.
In May, Howwe.biz reported that Nakumatt was to close several of its Ugandan stores over the company’s total debt that now stands at over Shs500bn.
Nakumatt management denied the allegations and claimed that they were giving other branches a better chance to do business by closing some outlets.
Reliable sources revealed to us that there was a delay in concluding a $75m cash injection by a strategic investor who had expressed interest in giving the supermarket much needed financial support. As a result of the delay, Nakumatt staff and suppliers have gone several months without pay.
Nakumatt is one of Kenya’s big retail chains. Its predecessor, Nakuru Mattresses, was founded by Has Hashmuk Shah. He employed his brother, Magnalal Shah, after the latter’s clothing store collapsed under a load of debts. Magnalal, with the help of his sons, Vimal and Atul, eventually paid off his debts and bought off the corner retail shop from Hashmuk.
From a 10-square foot emporium grew what is now known as Nakumatt Holdings Limited. Its name was an amalgamation of “Nakuru Mattresses”. It has 30 stores in Kenya, three in Uganda and Rwanda, and one in Tanzania, with plans to set up four more.
A Nakumatt store, Nakumatt Downtown, burnt down on January 28, 2009, killing more than 20 people.
