Nakumat Finally Shuts Down in Uganda

[Omollo]

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It will shut down in Kenya by the end of this week, according to multiple sources.

[RV Pundit]

Stop spreading propaganda.

[Omollo]

Stop spreading propaganda.

Be accurate. Exactly what propaganda am I spreading? Couldn't you go through the approved process like demand evidence? I saw no reason to attach lots of garbage over a matter in the public domain.

But I get it, this is yet another company going down on Jubilee's watch! That undermines your narrative badly does it not?

[Omollo]

[Omollo]

[Omollo]

http://www.monitor.co.ug/Business/Nakumatt-Katwe--rent--arrears/688322-3887762-jir30h/index.html

[patel]

Jubilee caught up in a perfect economic storm....Ruto man Rotich at the finance one more reason not to vote for jubilee

[hk]

Nakumatt needs to shutdown nonperforming branches and concentrate on branches with high traffic like Mega, junction and TRM. But so what if nakumatt shutdown, in a capitalist society companies fail while others thrive. Naivas, quickmart are expanding, while carrefour is decimating nakumatt crossroad in karen and nakumatt village market. Nothing is guaranteed. Nakumatt owe alot of money to suppliers who have since stopped supply to them. E.g. 50m to dormans, 100m to uniliver and 40m to githunguri dairies.

[RV Pundit]

Precisely.

Nakumatt needs to shutdown nonperforming branches and concentrate on branches with high traffic like Mega, junction and TRM. But so what if nakumatt shutdown, in a capitalist society companies fail while others thrive. Naivas, quickmart are expanding, while carrefour is decimating nakumatt crossroad in karen and nakumatt village market. Nothing is guaranteed. Nakumatt owe alot of money to suppliers who have since stopped supply to them. E.g. 50m to dormans, 100m to uniliver and 40m to githunguri dairies.

[Georgesoros]

Reorganization.
THe firm is employs too many people to go under. Maybe its time to cut taxes and size of govt in order for the country to grow. THe govt is toooo big.

[Omollo]

HK

So which ones is Nakumatt Uganda concentrating on? It is entertaining when you offer speculative economics on simple mercantile issues but not funny when you start extending it to spinning away facts.

Watu wengine jameni!

The moment a company cannot pay suppliers or its rent is the moment you know it is gone. Nakumatt is closing down. The people who have explored rescuing it with private capital soon find it is more viable to even start their own chain than pump money in Nakumatt. It obligations far out weigh any assets it might have - even the brand name.

It was forced out of it premises by the property manager who has issued notices to the remaining outlets.

Nakumatt needs to shutdown nonperforming branches and concentrate on branches with high traffic like Mega, junction and TRM. But so what if nakumatt shutdown, in a capitalist society companies fail while others thrive. Naivas, quickmart are expanding, while carrefour is decimating nakumatt crossroad in karen and nakumatt village market. Nothing is guaranteed. Nakumatt owe alot of money to suppliers who have since stopped supply to them. E.g. 50m to dormans, 100m to uniliver and 40m to githunguri dairies.

[hk]

HK

So which ones is Nakumatt Uganda concentrating on? It is entertaining when you offer speculative economics on simple mercantile issues but not funny when you start extending it to spinning away facts.

Watu wengine jameni!

The moment a company cannot pay suppliers or its rent is the moment you know it is gone. Nakumatt is closing down. The people who have explored rescuing it with private capital soon find it is more viable to even start their own chain than pump money in Nakumatt. It obligations far out weigh any assets it might have - even the brand name.

It was forced out of it premises by the property manager who has issued notices to the remaining outlets.

Oh please!! where did I say they are concentrating on. I said they should rationalize get fewer performing branches. As it is they have zombie branches with longterm expensive leases that suppliers aren't even supply to.

[Omollo]

Could someone else point it out for HK so I don't appear unduly overbearing?

[Nefertiti]

Rather than just a mismanagement story I see it as a sign of increasing competition as FDIs flow in. Even food retail will sweep out some weak players. Equity kicked out Barclays and now Airtel by ruthless competition. If Dangote comes in construction sector will benefit overall but Bamburi dinosaurs will suffer. We need FDI in sugar, coffee, cement, leather.

HK, it's too late. Babysitting Uchumi has not helped. Bye bye Nakumatt - we're better off for it. Retail has matured.

[Georgesoros]

Agreed but some disruption may cause severe economic hardship if it goes thru, remember CITIBANK during the financial crisis? It has to be done in a manner that does not disrupt the economy.

Rather than just a mismanagement story I see it as a sign of increasing competition as FDIs flow in. Even food retail will sweep out some weak players. Equity kicked out Barclays and now Airtel by ruthless competition. If Dangote comes in construction sector will benefit overall but Bamburi dinosaurs will suffer. We need FDI in sugar, coffee, cement, leather.

HK, it's too late. Babysitting Uchumi has not helped. Bye bye Nakumatt - we're better off for it. Retail has matured.

[hk]

Rather than just a mismanagement story I see it as a sign of increasing competition as FDIs flow in. Even food retail will sweep out some weak players. Equity kicked out Barclays and now Airtel by ruthless competition. If Dangote comes in construction sector will benefit overall but Bamburi dinosaurs will suffer. We need FDI in sugar, coffee, cement, leather.

HK, it's too late. Babysitting Uchumi has not helped. Bye bye Nakumatt - we're better off for it. Retail has matured.

The only significant FDI into the sector are carrefour( just 2 stores) and choppies which bought ukwala. I am not advocating for bailouts for nakumatt on the contrary. But for nakumatt to survive it has to close non-performing branches and remain with profitable ones.

[Omollo]

HK

When the paramedics rush to a place where there is a patient, they first check the vitals. If it is a drowning patient, they start usual immediately because for some reason drowning patients can still be revived long after we ordinary people declared them dead! But if it is a gunshot victim it is a bit tricky.

Nakumatt is DEAD. Get it. Yesterday (as I tried to inform you), landlords started seizing the shops with inventory inside. Virtually all the rented premises (and it looks like they never built) have vacate notices issued.

Nakumatt itself has not made it any better as evidence of preparations to shut down in Kenya are pretty obvious.

Yesterday you denied saying: Nakumatt needs to shutdown nonperforming branches and concentrate on branches with high traffic . You attempted to hide behind subterfuge by pretending to have spoken about the "future".

So the closure in Uganda you and Pundit denied, is not after rationalization, is it? So Nakumatt in Uganda is not "[shutting-down] nonperforming branches [in Uganda to] concentrate on branches with high traffic"??? I guess that is the recipe you have for Nakumatt Kenya.

The problems of Nakumatt have nothing to do with profitability. In my book Nakumatt's core business of money laundering ended as other supermarkets and outfits replaced it. The frontmen who had linked it with government and offered protection lost out. It is instructional that Nakumatt is going down under Uhuru Kenyatta or since he took over.

The only significant FDI into the sector are carrefour( just 2 stores) and choppies which bought ukwala. I am not advocating for bailouts for nakumatt on the contrary. But for nakumatt to survive it has to close non-performing branches and remain with profitable ones.

[RV Pundit]

Omollo - I think Nakumatt will not go down - they have long line of folks wanting a piece of it - it upto the Shahs to let go of his company before it's too late.

[hk]

Omollo - I think Nakumatt will not go down - they have long line of folks wanting a piece of it - it upto the Shahs to let go of his company before it's too late.

I also think it can be salvaged. But they better do it soon otherwise suppliers will completely stop supplying and that'll be the end of it.

[hk]

HK

When the paramedics rush to a place where there is a patient, they first check the vitals. If it is a drowning patient, they start usual immediately because for some reason drowning patients can still be revived long after we ordinary people declared them dead! But if it is a gunshot victim it is a bit tricky.

Nakumatt is DEAD. Get it. Yesterday (as I tried to inform you), landlords started seizing the shops with inventory inside. Virtually all the rented premises (and it looks like they never built) have vacate notices issued.

Nakumatt itself has not made it any better as evidence of preparations to shut down in Kenya are pretty obvious.

Yesterday you denied saying: Nakumatt needs to shutdown nonperforming branches and concentrate on branches with high traffic . You attempted to hide behind subterfuge by pretending to have spoken about the "future".

So the closure in Uganda you and Pundit denied, is not after rationalization, is it? So Nakumatt in Uganda is not "[shutting-down] nonperforming branches [in Uganda to] concentrate on branches with high traffic"??? I guess that is the recipe you have for Nakumatt Kenya.

The problems of Nakumatt have nothing to do with profitability. In my book Nakumatt's core business of money laundering ended as other supermarkets and outfits replaced it. The frontmen who had linked it with government and offered protection lost out. It is instructional that Nakumatt is going down under Uhuru Kenyatta or since he took over.

The only significant FDI into the sector are carrefour( just 2 stores) and choppies which bought ukwala. I am not advocating for bailouts for nakumatt on the contrary. But for nakumatt to survive it has to close non-performing branches and remain with profitable ones.

Omollo I think on this one you might be right. I just don't understand why Nakumatt would fail to pay rent even for a performing branch like TRM. Garden city branch, ridgeways are all zombie branches that should be shutdown to pay rent on performing branches. If they don't rationalize or get serious cash injection it'll be over soon.