Hotpoint Appliances Limited has filed a petition to declare cash strapped supermarket chain, Tuskys, insolvent. The petitioner is seeking to have the retailer liquidated in efforts to recover over Sh100 million owed for the supply of electronics.
Through an ad in one of the dailies, Hotpoint Appliances, through their lawyer, Macharia-Mwangi & Njeru announced that the petition will be heard in the High Court of Kenya at Nairobi Commercial and Tax Division in Insolvency Petition No. EO18 of 2020.
The notice invites any other creditor or contributor of Tuskys Supermarket wishing to support or oppose the petition to appear at the hearing in person or use an advocate upon which they will be furnished with a copy of the petition.
Tuskys Supermarket has had a tumultuous few months amid claims of mismanagement and theft. The retailer’s woes have also been attributed to internal wrangles and sibling rivalry, who are also the shareholders.
The supermarket Chain’s financial troubles have seen suppliers pull out resulting in under-stocked branches with customers losing confidence in the supermarket chain. The company has faced increasing challenges paying its workers, suppliers, and bills such as rent.
Last month, Tuskys was forced to pay Sh15 million out of Sh26 million in rent arrears to avoid auctioning of assets in its Kisumu branch. The Nakuru outlet was also advertised for an auction early August in efforts to recover pending arrears.
In July, a transaction adviser with the company disclosed that the retailer was seeking to sell a majority stake to a private equity firm and an undisclosed foreign retailer as it struggled to stay afloat.
Tuskys recently confirmed that it had signed a Sh 2 billion deal with a Mauritius based fund in a deal that saw the retailer inject fresh working capital which they said, was to help them in the short term.