Troubled retailer Tuskys’ dream to turn around could wait longer as lenders demand billions owed to them by the retailer.
According to new revelations, the retailer owes Ksh2.8 billion to Equity Bank and Diamond Trust Bank (DTB), a debt that will play a big role in regaining stability.
In court filings regarding the ongoing liquidation case against Tuskys, it was revealed that Tuskys owes DTB Ksh2.5 billion which includes a term loan, overdraft facility, letters of credit & guarantee, higher purchase facilities and insurance premium facilities (IPF).
On the other hand, the retailer owes Equity Bank Ksh285.1 million.
Tuskys became the first Supermarket chain to go under the scrutiny of CAK’s buyer power department which was formed after Nakumatt holdings went down with Ksh30 billion worth of suppliers’ debt.
Tuskys owes its creditors around Ksh6 billion, and it is now banking on a Ksh2 billion capital injection from a Mauritius based firm for its short-term cash troubles.
In September, Tuskys announced that it had received Ksh500 million capital injection, part of the Ksh2 billion from a Mauritius-based investor.
However it later emerged that the unnamed investor is demanding that the seven siblings who own Tuskys place all their shares as security for the loan, which they will have to cede in case they default the loan.
Stephen Mukuha, Sammy Gatei, Yusuf Mugweru and George Gachwe each own a 17.5 percent stake in Orakam while John Kago, Mary Njoki and Kenneth Njeri own a 10 percent stake each.
The cash strapped retailer has in the past few months faced increasing challenges paying its workers, suppliers and bills such as rent.
Tuskys woes have seen suppliers pull out resulting in under-stocked branches with customers losing confidence in the supermarket chain.