Choppies Supermarket has now put up for sale its retail equipment and property in Kenya.
In a circular to shareholders, the cash strapped retailer says that the move will enable it settle the current liabilities.
“Operations have since been scaled down to only two stores and negotiations are ongoing to sell equipment to local operators and/or existing landlords to clear some of the outstanding liabilities,” said Choppies in a circular to shareholders.
The Retailer had over 15 outlets that it acquired from Ukwala Supermarket in 2015.
In the recent times, Choppies has laid off a total of 583 workers as it struggles with strained cash flows.
Read: Retailer Choppies Lays Off 583 Employees As Cash Crunch Bites
In court documents, in the month of November 2019, 486 workers were declared redundant and 97 others had quit earlier.
Choppies acquired 75 percent stake in Ukwala at an estimated Ksh1 billion. The 25 percent stake is held by the local subsidiary, Export Trading Group (ETG).
Choppies is the second giant retailer to fall in the Kenyan market in the last couple of years, after Nakumatt.
Kenyan retail market is characterised by stiff competition from the already existing retailers such as Tuskys and Naivas that have good customer base across all social divides.
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