This archive report was first published on 9 August 2019.
On August 9, 2019, Choppies Enterprises Kenya Ltd reached an agreement with the Association of Kenya Suppliers (AKS) to clear all outstanding supplier payments. This move comes after the supermarket chain experienced difficulties paying its suppliers.
According to a memo seen by Kenyan Wallstreet, Choppies management has committed to paying all suppliers on time, effective immediately. The company's management stated, 'We recognize how important prompt and on-time payment to suppliers are to the economic health of the sector and are pleased to confirm that Choppies are now able to adhere to all agreements.'
Choppies has faced challenges in recent months, including the sacking of its CEO, Ramachandran Ottapathu, in May 2019. The company's slow growth and difficulties led to the closure of its Kiambu town and Bungoma branches earlier this year. However, with the recapitalization of the business, Choppies is now able to resume normal operations.
Choppies local shareholder, Export Trading Group, supported the recapitalization drive and has committed to supporting business growth. The retail chain, which started in Botswana in 1986, operates 12 stores in Kenya, acquired from Ukwala Supermarkets in 2016.
Choppies has also refuted claims of delays in paying employees' salaries, stating, 'The employees have always received their salaries on time and there are no pending salaries in arrears to the employees.'
