Following the incident that took place at Uchumi Supermarket, Garden City yesterday (Monday, 12th October), Ugachick has come out to clear the air saying that the incident that occurred was a result of a breach of contract between Ugachick and Uchumi.
Uchumi Supermarket was trading with Ugachick on a 45 Day Memorandum of Understanding, where amounts 45 days overdue were required to be cleared without fail.
Following the understanding between the two businesses, Uchumi failed to honour their obligation to pay the total sum of over One Hundred and Eighty Five Million Uganda Shillings over a period of over six months (180 Days Over Due).
“We pay all our local farmers who provide us with chicken promptly and delays like these interrupt and affect the operations of the company, causing delays in their payments.” Says Aga Sekalala, Managing Director Ugachick.
As a business, Ugachick thereafter halted supply to the supermarket and decided to seek legal redress on the matter. This resulted in a ruling that gave Uchumi an opportunity to negotiate another payment plan that they also failed to honour.
The court then issued a warrant and execution order to attach assets belonging to Uchumi Supermarket to enable Ugachick recover the above mentioned amount.
“We value all our business partners and would like to assure them that we did everything that we could to sustain the business relationship between Uganchick and Uchumi, and the act of seeking legal redress was a last resort.” Concluded Mr. Sekalala.