Uchumi Crisis & What to Do When Your Employer is in Trouble

Most employees are usually caught unawares when they suddenly realize that the company is broke or bankrupt.

Your company is about to be sold off and rumors are flying around the office with your colleagues telling you not to panic.

The management is still mum about the issue and no official communication is up yet.

How do you react and even handle such a situation because everyone needs to make a living after all, right?

This is the case with the once prestigious Uchumi supermarket that is at the brink of collapse because its finances are not that good.

According to an article on the standard newspaper, about 30,000 suppliers are on a go slow over lack of payment by the company.

The chief executive of Uchumi Jonathan Ciano is still optimistic about the company’s survival but agrees that financial numbers are not looking good.

However, signs are that the country’s oldest retail chain is going through a rough patch.

The implication of this is that Uchumi does not have enough cash to meet its short-term debt obligations when they fall due, which would include payments to employees

A senior member of the board appeared to have agreed to the fact that the company’s financials are not looking good, but was confident Uchumi would not fall by the wayside a second time.

The company’s financial woes have been marred alleged misuse of funds forcing the closure of its major branches within the CBD some years back.

Webuye pan paper mills is also another company that collapsed as the government is yet to revive the firm despite pressure from local leaders.

The collapse of the paper making firm also caused the sacking of more than 1,500 employees.

As an employee, how prepared should one be incase such an ugly scenario occurs and how do you know if your company will soon collapse?