Troubled retail store Tuskys plans to shut half of its branches in an attempt to stay in operation. The supermarket chain is facing deep financial challenges that have made it to scale back on its operations. Tuskys runs 52 stores in Kenya and aims to bring them down to 25 stores.
The retailer has been in and out of court due to its failure to pay suppliers, employees, and other parties it owes money. Hot Point Appliances and Syndicate Agencies are some of the firms seeking to close down the company so as to recover their dues.
A court petition filed by Hot Point Appliances in October read, “The petitioner imports the goods sold to the company. As a result of the failure to pay for the goods promptly, the petitioner is suffering losses. The petitioner has made repeated requests and demands to the company for the payment of the debt, but the company has failed, refused, and neglected to pay the debt.”
In September, Tuskys shareholders agreed to a KSh2 billion loan from a Mauritian fund. However, the capital injection has done little to end the retailers woes.
See also: Tuskys Ordered to Clear KSh 248 Million Arrears or Face Liquidation
