in

Court Gives Struggling Retailer Tuskys 45 Days To Pay Creditors Or Risk Liquidation

tuskys
Tuskys Supermarket. [Courtesy]

Supermarket chain Tuskys has 45 days to pay its suppliers some Sh248 million or risk liquidation.

In case filed by electronics dealer Hotpoint and supported by 12 other creditors, the cash-strapped retailer asked for 45 to 60 days to come up with a payment plan.

“Shareholders have been meeting to approve the injection of capital to rescue the business. The same was voted on and what follows was finalizing the debt transaction that was meant to turn around biz and pay both secured and unsecured creditors,” Tuskys argued.

The creditors include: Brookside, Greenspan Mall, Kenblest, Vitafoam, Standard Group Plc, United Millers, Rentco Africa, Textplus Industries, Delight Limited and two individuals namely John Maina, and Eliud Mburu.

Justice Francis Tuiyott, however, ordered the retailer to report back in 45 days noting that they had not reached out to the creditors.

Tuiyott also stated that Tuskys had in the past declined to meet the creditors demands.

“You’ve heard the concern of the creditors, they need a quick closure of the matter and you need to share information with them. I will require you to report to the court within 45 days and if you’ll not disclose the information this court will frown upon it,” the judge said.

The case will be mentioned on November 17.

Earlier on in the day, former Tuskys employees staged demos in Nairobi and Kisii over delayed pay.

As the retailer struggles to stay afloat, a Mauritius-based investor has given a Sh2 billion debt.

Tuskys received the first Sh500 million tranche on September 18.

Should the shareholders default on payment, they will risk losing the family business to the unknown investor.

Email your news TIPS to news@kahawatungu.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

Written by Eva Nyambura

Content creator at Kahawatungu.com | Passionate about telling the untold story. Lover of life, music and technology. Simplicity is KEY

Email: news@kahawatungu.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Online Scams

Eight Online Scams You Should Be Wary Of

Kenyans Raise Funds To Help Struggling Ex-NTV Journalist Lolani Kalu