Nairobi — Uchumi Supermarket (USP) has hinted at plans to convert its Lang'ata Hyper outlet into a shopping mall to boost revenue.

The struggling retailer, however, revealed that the ambitious plan is currently on hold following a legal standoff.

"Conversion of Langata Hyper into a mall is pending due to court cases with a tenant -Hotspot. The mall currently has 10 tenants," USP revealed during a recent creditor meeting.

The once-dominant retailer has found itself struggling to stay afloat over the recent years after experiencing financial difficulties from changing consumer preferences and intense competition.

In a bid to turn things around, USP appointed Owen Koimburi on March 20, 2019, to oversee the implementation of a Company Voluntary Arrangement (CVA), a structured recovery plan aimed at restructuring its debts.

However, recovery has been a tough and turbulent process filled with challenges, where the first creditor meeting on May 13, 2019, saw the CVA proposal rejected by secured creditors.

The second creditors meeting, held on 2nd March 2020, passed the CVA, which was subsequently ratified by the court on 1st July 2020.

The transformation of Langata Hyper into a fully-fledged mall could mark the beginning of a new chapter, ushering in fresh revenue opportunities for the company, which has been facing financial pressures over the past decade.

Despite Uchumi's significant decline from its former retail dominance, Lang'ata Hyper remains a key asset in its operations.

The company has been operating the Uchumi Lang'ata Hyper branch alongside the Unicity outlet near Kenyatta University.