Al Manama supermarket collapse impacts FMCG supply chain
The closure of a supermarket chain in the UAE owned by Al Manama Group has caused the loss of millions of dirhams in unpaid bills throughout the supply chain.
Around 40 representatives from over 100 suppliers came together in December and alleged they have been unable to contact the management of the group despite repeated attempts.
The suppliers have lost millions of dirhams worth of goods, which the supermarket chain never paid for before closing.
“The trouble with the group started early in March and they almost stopped paying us the money from June,” said PK Kutty, sales manager, Al Jazira Poultry Farm. “But I am dealing with the group for more than three decades, and I trusted them when they said the dues would be settled soon.”
“I have eight cheques worth a total of AED1.4 million with me and two of them have already bounced. The rest are due in the coming month and I don’t think it will pass at the bank,” said Mohammed Shameem, credit controller at logistics firm Baqer Mohebi Enterprises.
The 40 suppliers have indicated they are planning to take legal action against the group due to the unpaid fees and bounced cheques. Al Manama Group had more than 15 shops across Dubai, Sharjah, Ajman and Ras Al Khaimah.
Repeated calls to the Al Manama Group offices by Logistics Middle East went unanswered.
Al Manama Group went bankrupt in December, leaving countless suppliers unpaid.