Financially troubled retailer, Tusker Mattresses(Tuskys) Limited has received KSh 500 Million, the first tranche of the KSh 2 Billion credit that it had secured from a private equity firm based in Mauritius.
A statement from the firm on Friday said the fresh credit line will enable Tuskys to cover its working capital requirements, including payment of outstanding staff salaries, pending bills to suppliers and rent arrears.
The latest outlet to shut its doors to shoppers is that at the Greenspan Mall located in Donholm in Eastlands Nairobi. This branch was closed down by the Greenspan Mall’s management Thursday after it failed to clear rent arrears amounting to KSh 30 Million.
Tuskys management said that it had used proceeds from the first disbursement to settle a bill of KSh 321 Million, debt that it owed some of its suppliers.
The retailer also said it had cleared August arrears owed to suppliers on its online trading platform.
This portal has some 280 suppliers and has so far posted a turnover of more than KSh 1.8 Billion, only eight weeks into its launch.
“We remain committed to ensuring that we progressively continue to meet our liabilities and restore our shopping experience,” said Dan Githua, Tuskys Chief Executive Officer.
While the retailer has been keen to seek a strategic investor, a fierce rivalry happening within the boardroom of this family-owned business gets messy by the day and has now spilt over to the courts.