Al Manama su­per­mar­ket col­lapse im­pacts FMCG sup­ply chain

Logistics Middle East - - UPDATE -

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.

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