Tusky’s Fails to Pay It Debtors – Imminent Shut Down
Tusky’s the once big boy in the retail sector in Kenya has announced laying off of staff, shut down 4 branches and had visits from auctioneers in just one week.
In what may be seen as a repeat of the Nakumatt saga, Tusky’s was shamed into having it’s electricity cut during this week.
Auctioneers raided the Juja City Mall and the Kakamega Mall, in scenes that were seen all over social media.
Earlier in the week, the retailer was forced to shut down another branch in Eldoret after the landlord at the premises sent out auctioneers to force due rent payments.
Just last month, the retail chain was forced to temporarily shut down branches at Kisumu’s United Mall, K-Mall in Komarock and inside Nairobi’s Central Business District in a carbon-copy row.
Tuskys is yet to clear salaries to staff stretching between the months of July and August despite management’s promises of settlement.
Hotpoint Seeks ksh 248 Million Debt
In what could signal the end of this once great supermarket, Hotpoint has gone to court seeking to wind down the company.
In a petition to the High Court, Hotpoint says that Tusker Mattresses Limited (the mother of Tuskys) is insolvent, unable to pay debts and should be wound up.As of June, the domestic equipment dealer is owed Sh248 million by Tuskys, it says in its petition.
The debt had stood at Sh259.9 million in May and after a statutory demand, Tuskys trimmed it by only Sh11.7 million.Hotpoint says it doesn’t have any security tied to Tuskys assets for the debt owed.Source the Standard
The Slow Death of Tuskys
Tusky’s grew as a small family outfit. Some say it should have stayed as such. But given the public fights between family members, the end was inevitable.
As of August 2018, Tuskys owned and operated sixty supermarkets in Kenya and Uganda. It had over 6000 employees in its haydays. Especially after the slow death of Nakumatt.
Starting in 2006, their family problems were captured on TV for all to see. It started with the public chasing of former CEO Charles Githua by grand children of the founders.
Last month, the retailer indicated it had signed a term sheet that would see it receive Ksh.2 billion in new capital injection from a Mauritius-based fund.
Management however remains lip tight on the progress of the investment as it engages the fund before a potential deal is closed.
The retailer has in the meantime focused itself on a rebranding exercise as it targets to drive sales through sharp discounts.
Further, the supermarket continues to engage suppliers as it markets a new settlement platform that is meant to fast-track payments for stocks supplied.
Tuskys owes in excess of Ksh.6 billion in debt to suppliers and other trading partners.
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