Tuskys Plans To Lease The Brand In Last Kicks Of Survival

Tuskys Supermarket is planning to lease out its brand in an effort to try and survive even as all odds seem to be against it. The ailing retailer has already sought approval from the Competition Authority of Kenya for the same after losing most of its stores.

The once vibrant retailer that offered to bail out the now-dead Nakumatt Supermarket, is currently a shell of its former self with landlords chasing it out of the majority of its stores. More than 4,500 people have lost their jobs as a result.

In the new proposal, Tuskys will allow various independent retailers to trade using its brand at a fee following delays in closing a 2.1 billion shillings financial deal with a mystery offshore investor. The strategy was almost implemented by Uchumi Supermarket last year.

Read More: Tuskys Exits Nakuru As The Fall Now Becomes Clear

The move is likely to see Tuskys have other small businesses trade using its brand at a fee the way malls have been doing by turning their space into stalls at the height of the Covid-19 pandemic. Tuskys has also sought regulatory guidance on how to lease its brand to investors.

The leasing of the brand will give the cash-strapped Tuskys – whose branches have whittled down from more than 60 to an estimated seven — an opportunity to bounce back in the future should it get deep-pocketed investors. But will it ever come back?

“The Authority received an advisory request from Tusker Mattresses Limited regarding a proposed franchising project. Specifically, Tuskys sought advice on the necessary legal steps and requirements that they should put into consideration to enable the project to become a success,” said CAK in a statement.

“Tuskys was requested to furnish the Authority with the final draft of the franchising agreement, once prepared and before execution, for its review.”

Read More: What Should You Look At Before Signing A Lease Agreement?