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Tuskys Signs Ksh 2 Billion For Financing Facility With Mauritius Fund

BY Soko Directory Team · August 26, 2020 11:08 am

By Getrude Matayo

Supermarket chain Tuskys has signed a 2 billion shillings agreement with undisclosed Mauritius fund to help shore up its wobbling financial position and restock the struggling business.

“This funding will help alleviate our current capital constraints impacted by covid-19 and further reposition the business for increasing stakeholders’ value” Tuskys Chairman Bernard Kahianyu

The retailer, which is teetering on the brink of collapsing, is weighed down by mounting debts, disgruntled unionized employees, fading supplier’s confidence, and shrinking financial power to replenish essential items on the shelves.

Last week, the Tuskys was forced to pay 15 million shillings out of 26 million shillings rent arrears for United Mall outlet in Kisumu County after auctioneers raided the premises.

Earlier this month, Tuskys revealed that it had owed suppliers a total of 6.2 billion shillings and had agreed to pay 40 percent of the amount (2.4 billion shillings) over two years

The financing is however subjected to fulfilling transaction condition precedents according to a statement it released on Tuesday.

According to Tuskys, they wish to reiterate their commitment to resolve the underlying working capital challenges quickly. This funding will provide the needed impetus to their overall capitalization journey. The Tuskys Board and management will engage all stakeholders in the coming days to agree on business modalities going forward.

In July, the supermarket chain said it needed immediate capital of 2 billion shillings to survive in the short term as it scrambles to win back the confidence of suppliers and navigate a shareholder fallout

The retailer is rocked by wrangles among its shareholders with one of the seven siblings having vowed to block an investor deal.

According to the retailer, it was looking to raise new capital from a strategic investor in exchange for a majority stake under the rescue bid. Details of the Mauritius fund are yet to be disclosed and whether a share sale is part of the agreement.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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