By Watchdog reporter
Struggling retail giant, Nakumatt holdings is one outlet down after Katwe branch was closed over rent arrears. The outstanding rent bill is said to be in excess of shs250 million. The branch was housed at Buganda Kingdom building called Muganzilwaza.
The shs340 million outlet, covering a shop floor space of 21,000Sq ft, was opened in October 2013.
The retail giant is said to be highly indebted with many of her eight branches lacking essential items any supermarket would carry. When Nakumatt started showing signs of struggling including irregular payment schedules late last year, some suppliers started demanding cash on delivery, while others went a notch higher to stop supplying Nakumatt. That when supermarkets shelves started to run dry.
Meanwhile the company’s long serving director Thiagarajan Ramamurthy has exited the retailer, just months before a major shakeup expected in a few months from now.
Early this year, Nakumatt holdings agreed to sell a 25 percent stake to a foreign fund for $75 million. The deal is part of the chain’s plan to overhaul its balance sheet and restructure a $75 million debt owed to four local banks.