Britannia Allied Ind.Ltd has dragged city business lady Amina Hersi’s Nakumatt Supermarket to high court commercial division in Kampala for failure to honor their contractual obligations after failing to pay shs400m for the goodies supplied.
The documents seen by eyewitness, the commercial court has issued out summons to Nakumatt (U) Ltd to put in its defense in only 10 days, failure to which judgment will be given in their absence.
Last week (28th/6/2017), Nakummatt shut down three of its outlets in Uganda under the guise of ‘re-development to add value in the shopping experience of its clientele’.
The supermarket has been facing financial challenges with a debt estimated to be Sh15 billion. The supermarket in Kenya had asked for the government’s help to clear the debts, a move which the government turned down.
Last month the regional retailer Nakumatt Holdings embarked on an accelerated restructuring programme aimed at cutting operational costs by Sh1.5 billion annually.
Nakumatt Holdings managing director Atul Shah said the new operating strategy has been developed to provide a recovery platform and replace growth-driven Nakumatt 2.0 strategy rolled out in 2010.
The outlet said there are plans to close several of its poorly performing branches in Kenya and Uganda and open new branches at carefully selected high traffic locations.
Nakumatt Acacia Mall in Kololo, Village Mall in Bugolobi and Victoria Mall in Entebbe were all closed out of business, according to Marc du Toit,the company’s head of retail.
Through Mugenyi & Co.Advocates, Britania claims during the period between January 2016 and June 2017, Nakumatt ordered for consignments of goods from their main factory located at Plot M541 Ntinda Industrial Area, Kampala but has since failed to clear.
Britain says that they have been supplying products to Nakumatt through other sister companies like Charms (U) Ltd official Uganda’s sole distributor for Colgate-Palmolive products like Colgate tooth pastes, toothbrush, dental ﬂoss, Protex, bar soaps, shower gels, liquid soaps, sta-soft, Axion, Ajax . While Britania is the manufacturer and distributor for Splash, Biscuits, Top-Up tomato sauces, Sun-Sips have also been supplying to the biggest chain stores in the land but with no pay in return.
The summonses were signed by the deputy registrar Mr Thaddeus Opesen for Nakumatt to respond from the effects of a bad economy.