Tusker Mattresses Limited (Tuskys) has closed one of its stores in the Nairobi CBD over rent arrears. Closure of the CBD branch named Tuskys Hakati follows two other closures in the past two weeks.
Last week the retailer closed its Uganda Branch and Eldoret and another in Komarock after landlords resorted to claiming rent arrears through auctioneers. Tuskys Kisumu Branch reopened on August 21, after a short closure on August 20 over rent worth Ksh 26 million. The retailer paid Ksh 15 million, promising to clear the balance on August 24.
Citizen reports that staff contracted through Artemis Outsourcing Limited are yet to receive their pay for July, with unionised staff facing similar arrears as of August 26.
Tuskys’ Deal with Mauritius Investor Could be the Saving Grace.
The retailer might calm tempests of unpaid dues, rent arrears and dwindling willingness among suppliers thanks to a raft funding from a Mauritius based investor. On August 25, board chairman Bernard Kahianyu announced that the retailer had secured over Ksh 2 billion in financing that will address its capital constraints.
“We have signed terms of agreement with a Mauritius based fund for the provision of a financing facility amounting to just over KES 2.0 billion subject to fulfilling transaction condition precedents. This funding will help alleviate our current capital constraints impacted by COVID-19 and further reposition the business for increasing stakeholders’ value.”
Board Chairman Bernard Kahianyu.
Nevertheless, the financing will only massage the deep debt wounds by the retailer, who’s debt outstrip its assets significantly. In a letter to CAK dated August 7th, the supermarket indicated that its supplier debt amounted to up to KSh 6.2 billion, 40% of which was rescheduled.
READ ALSO: Tuskys Owes Suppliers KSh6.2 in Debts
Tuskys is now the second largest retailer after Naivas.
