The ailing retailer, Tuskys Supermarket has decided to sell assets worth 911 million shillings to avoid liquidation that seems to be coming first.
The ailing retailer, Tuskys Supermarket has decided to sell assets worth 911 million shillings to avoid liquidation that seems to be coming first. 60 creditors had applied to have Tusksys Supermarket liquidated for being unable to clear debts.
The retailer had renewed some hope in creditors when it said that it was expecting an injection of 1.6 billion shillings from an investor in Mauritius. The unknown investor seems to have either backed out or delayed in remitting the funds.
Tuskys Supermarket was once a vibrant giant retailer in the region. At one time, when Nakumatt Supermarket went down, Tuskys offered to bail it out and when it failed, it moved into some of the outlets that had been left by Nakumatt.
The Supermarket has told the High Court that it plans to sell non-core assets like furniture, fixtures, and fittings in 19 branches, most of which have been shut by landlords for rent arrears. It will then use the cash to pay of some of the debts.
The retailer revealed the sale plan in the case where the creditors led by Hotpoint Appliances are pushing for liquidation of the supermarket over a 1.02 billion shillings debt. Tuskys more than 3 billion shillings to various suppliers.
Nobody really knows the reasons why such a vibrant retailer went down that fast. There was so much hope for Tuskys, with at least 4,500 employees directly depending on it for livelihood. Now, they do not have a place to work.
Family feuds are stealing of goods and money by family members who own the business, as well as those working for it, was cited as a major reason that led to it collapsing that fast.