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Tuskys Runs Broke, Shuts Down The Greenspan Outlet

BY Soko Directory Team · September 17, 2020 03:09 pm

Will Tuskys Supermarket ever come out of the woods? Will it ever recover or this is the end of it? Is Kenya becoming a graveyard where supermarkets start off and die unannounced along the way?

It seems the financial woes facing Tuskys Supermarket are here to stay and will not end until the retailer is dead and forgotten. The retailer has now been ordered to shut down the Greenspan outlet over rent running into 30 million shillings.

Greenspan mall’s Real Estate Investment Trust (Reit) manager, ICEA Lion Asset Management (Ilam), said they resolved to shut the branch because it had failed to meet its tenancy obligation.

“Tuskys started showing signs of distress as a tenant earlier in the year with regards to the tenant’s obligations. As the REIT Manager, we have been in discussions with them to reach an amicable payment plan and warrant their continued operations at the mall,” said ICEA.

According to ICEA, the mall owner had granted Tusker Mattresses Ltd a lease on the Ground Floor 12 years starting July 2011. Tuskys occupies an estimated lease area of 74,629 square feet.

Tuskys announced the signing of terms of agreement with an undisclosed Mauritius-based private equity fund for the provision of a financing facility amounting to approximately Kshs 2.0 billion in August 2020.

“Following the announcement on business capitalization on August 25, we have continued with the process of consummating the transaction that will provide Ksh.2 billion for working capital with the aim of stabilizing business operations,” Tuskys CEO Daniel Githua said on Saturday.

“We expect the move by Tuskys to secure debt financing and the reopening of its branches to cushion the retailer against financial shocks amid reduced revenues and boost investor confidence especially in Kenya’s retail sector,” Cytonn Investments said in their report on the retailer.

Tuskys seems to be on its deathbed. It seems to have moved from a financial coma and now it is beyond recovery. Family feuds have killed and now customers will have no other option but to look for another service provider.

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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