Red Pepper and the Pepper Publications defaulting on loans!
In the recent few hours more and more rumours of the Red Pepper Newspaper is having financial difficulties. Like they are losing money without having enough earnings, the Red Pepper is supposed to own the sum of 26 billion shillings. Earlier this month Red Pepper already had issues.
Take a look:
“The Pepper Publications recently suspended publication of Hello, Akapapula and Emulalu subsidiary tabloids after majority of staff left the company over accumulated salary arrears. As the publication grapples with collapsing copy sales and dwindling advertisement revenues, Stanbic bank’s action could push the tabloid to the edge of bankruptcy. Sources are telling this website that the Pepper Publications sold its Shs 5bn Crane Bank loan to Stanbic before directors picking an extra Shs 2.5bn for luxury cars. Unfortunately, the tabloid has fallen short of honouring its financial obligations, compelling the bank to take drastic measures” (…) “Failure to pay means The Pepper Publications will have to get another bank to make over the loan. SOURCES said staff at the tabloid is worried about the future of the publication as most of the meager revenues coming in end up in the pockets of directors. “What we are witnessing now is milking a rock. We have gone six months without pay” (Xrated, 2017).
So the Red Pepper has tried to come with much different publication, but without having the funds to facilitate the expansion. Therefore we are seeing a meltdown in funds. So now the banks has lost their patience and now are in big trouble, even Stanbic Bank went further. They even sent debt collectors. Here is the story!
“On Monday morning, a group of debt collectors from Stanbic bank raided Red Pepper offices in Namanve, in an effort to get back their money the tabloid borrowed in to fund their expansion” (…) “Those who were already in tried to flee while those who hadn’t come got phone calls from someone called George, the chief security guard and they decided not to come,” said a source at the newspaper” (…) “Meanwhile, the long serving finance manager Bob Mahebewa threw in the towel on the very day, and he resigned in an effort to avoid future embarrassments. Muhebewa told his close friends that he was scared when he saw Stanbic debt collectors and he knows they must arrest the top five directors unless they pay all the money owed to the bank” (Guide Reporter, 2017).
We can wonder who will buy the Pepper Publication or if the papers and magazines will stop to be published. Pepper Publication and Red Pepper Newspaper needs fresh funds, since the trailing tabloid. Since they need more people buying their paper and read their stories since it seems like the people aren’t picking it up or if the investors has given it up. It is either or. Peace.
Guide Reporter – ‘STANBIC BANK DEBT COLLECTORS RAID RED PEPPER OFFICES, DIRECTORS FLEE WHILE FINANCE BOSS RESIGNS’ (14.03.2017) link: http://businessguideafrica.com/stanbic-bank-debt-collectors-raid-red-pepper-offices-directors-flee-while-finance-boss-resigns/
Xrated – ‘Stanbic Bank is set to recall a Shs7bn loan given to Red Pepper Publications as the tabloid’s financial woes worsen’ (10.03.2017) link: http://xrated.co.ug/stanbic-bank-is-set-to-recall-a-shs7bn-loan-given-to-red-pepper-publications-as-the-tabloids-financial-woes-worsen/