By Barnet.A.Shizzola
Ugachik poultry breeders one of the leading poultry products supplier in Uganda has dragged Uchumi supermarket before the Commercial Court over failure to pay chicken supplied to it.
In the suit which was filed on 18th August 2015, Ugachick is demanding Ushs 185 million worth of unpaid dressed chicken supplied to various branches of the supermarket in Kampala.
Mr.Aga Sekalala the Executie Director Ugachick said the chicken was supplied between March and July this year on credit but the supermarket has since failed to clear the debt thus causing financial loss to his business.
The presiding judge Thaddeus Opesen has issued summons ordering Uchumi Supermarket to respond to these claims in not more than 10 days.
Uchumi Supermarket is a chain retail enterprise with roots in Kenya. The company has had cash flow issues for quite some time now leading to non-payment of supplied goods. It has been sued by 3 different companies in Uganda since February this year.
Back in Kenya the company’s board of directors fired the Group CEO Jonathan Ciano and other officials in June of this year over alleged gross misconduct and gross negligence. In the same period they announced plans to recapitalize the group but it is yet to be seen what measures have been taken so far.