Tuskys Supermarket to manage Nakumatt’s operations
David Indeje
Tuskys Supermarkets has reached an agreement to save troubled retailer Nakumatt as part of plans to turn around its operations. Nakumatt has been unable to secure a strategic investor to pump in capital , that will help replenish its dwindling stocks on the shelves besides plans to shut down several unprofitable branches under its accelerated restructuring programme aimed at cutting operational costs by KSh1.5 billion annually. According to the Kenyan Wall Street who spoke to the Tuskys Chief Executive Dan Githua, the two retailers will remain separate entities but Tuskys will take over the management of Nakumatt. On the other hand, the Atul Shah family will step down and pledge their shares to the financiers for a period of six years according to people with knowledge of the matter. Nakumatt will now access stock from suppliers using Tuskys supermarkets; ‘goodwill and value chain’. Business Daily reported that the Trade Principal Secretary Chris Kiptoo is aware of ongoing talks towards a partnership among the two retailers. “I do not know the exact nature of the agreement reached between Nakumatt and Tuskys. As far as I am concerned these are private commercial transactions which we have no objection to as long as they done within the law,” Mr Kiptoo told the Business Daily .
According to a study termed ‘Kenya Retail Sector Prompt payment’ by the State Department of Trade, Retailers Nakumatt had accumulated debts of Sh278.9 million by December 2016, Tuskys owed suppliers KSh174.8 million, while Uchumi Supermarkets KSh123 million. Naivas Supermarket KSh86.4 million, Chandarana KSh35 million.
