Tuskys Gets Temporary Reprieve As Court Halts Actioning

Tuskys Supermarket swamped by mounting rent arrears, supplier debts, and boardroom wrangles, continue to shut down some of its outlets as Southfield mall outlet set to be auctioned next week.

In a notice in the local dailies, Makuri Auctioneers indicated that the auction is a matter between the landlords and Tusker Mattresses Limited.

The move comes barely two weeks after the retailer picked former Uchumi chief financial officer Chadwick Omondi as its new financial controller.

Kitchenware, furniture, entertainment equipment as well as an assorted of car accessories as among the items which are set to be sold on October 29^th.

Despite the brave faces donned by Tuskys owners in public and reassurances that the boat is inches away from being steadied, things are moving south for the retailer. Yesterday, the retailer shut down the Ronald Ngala out within Nairobi’s Central Business District.

This comes as a blow after the retailer shut down the Tom Mboya branch in April this year following the outbreak of Covid-19 at a time when customers were reporting Stoch shortages across all Tuskys branches in the country.

Tuskys once Kenya’s largest supermarket chain by footprint has been struggling with debts to suppliers amounting to slightly over six billion shillings.

Other outlets in Nairobi that have since ceased include the one on K-Mall in Komarock, Hakati branch also in Nairobi. Other closures have happened in Eldoret, Kilifi, Kitale, and Mombasa.

Three months ago, the retailer indicated that it is in negotiations with an offshore fund to sell some stake with the management indicating the proceeds would be directed to recapitalize the business even as some siblings in the family-owed business preferred to sell their stake instead.

Earlier this month, the troubled retail chain had three of its outlets also going under the hammer as landlords seek to recover outstanding rent.

The High Court has issued asset preservation orders which bar creditors from auction Tuskys properties. The court also barred the freezing of its accounts by various creditors.

Tuskys advocate Patrick Ogola filed the order under a certificate of urgency, looking to protect the company’s assets from unlawful distress and execution.

The ruling by Commercial Court Francis Tuiyott will bar several creditors from affecting the auction. Nevertheless, the order does not affect Greenspan Limited. A Tuskys outlet at Greenspan mall closed after rent arrears piled up past 30 million shillings.