Tuskys Supermarket has called on creditors to support its debt settlement plan that will see the ailing retailer back to business and able to settle its debts in one piece.
In a meeting between the suppliers and the management of Tuskys held on November 4, 2020, the retailer says all major efforts are being put in place to ensure that the business is back on its feet and creditors get their debts settled.
The company says it has brought on board investors who have already entered into various finance documents with the company and some security documents have already been taken up.
“The funding is a special situation lend linked to the impacts of COVID-19 and also other issues within the company which have been identified and which they are willing to resolve,” says Tuskys in minutes seen by Soko Directory.
Tuskys Supermarket was once healthy financially, expanding across the country and creating employment both directly and indirectly, until March with the Covid-19 pandemic and other internal issues brought its decline.
The company says it has embarked on a restructuring plan that will result in a leaner company with a reduction in branches from 56 to 25. This means Tuskys will be shutting down 31 stores.
The retailer has ruled out the option of selling the assets to pay creditors. “The calculation we have if we sold our assets and settled our debts, creditors will only recover 33 percent of the debts owed. However, with this recovery plan, the company will be able to settle all debts.”
“We are calling upon the creditors to support this plan in order to achieve an optimal outcome for all,” said the retailer.
Tuskys has been facing major setbacks in business that saw indefinite and the continued closure of several of its branches from as early as April, the retailer blames to decline in business on the COVID-19 pandemic.
READ: Ailing Tuskys Develops A Debt Settlement Plan For Its Creditors