Troubled chain retailer Tuskys Supermarket has announced that it has received Ksh500 million capital injection, part of Ksh2 billion from a Mauritius-based investor.
In a statement by Tuskys CEO Dan Gthua, the retailer said that part of the amount, Ksh321 million, will be used to pay landlords, staff, and suppliers.
“We have received the first tranche of the earlier announced Ksh2 billion credit disbursement today. This first tranche disbursed today amounts to Ksh500million and will cover immediate working capital requirements including partial settlements to our staff, suppliers and landlords among others. In particular the first tranche of the suppliers old debt amounting to Ksh321 million has been settled,” said Githua.
Former Tuskys employees on Friday staged protests in Nairobi’s CBD area as they demanded three months pay.
The protesters were part of a group of staffers laid off by the retailer.
The retailer also says that the August arrears for suppliers on the online custodial trading platform have also been settled.
This comes less than a week after Tuskys’ Greenspan Mall branch was raided by auctioners and closed down over rent arrears amounting to over Ksh30 million.
In August, Tuskys signed a Ksh2 billion deal with an undisclosed Mauritius based fund to inject the much needed capital to the troubled retailer.
“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholder’s value,” read a statement by Tuskys chairman Bernard Kahianyu.
The supermarket chain’s troubles have been riddled with mismanagement, theft and rumours. Tuskys woes have also been attributed to internal wrangles and sibling rivalry who are also the shareholders.
It is still not clear whether the Mauritius fund involve a share sale as part of its agreement.
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.