Struggling retailer Tuskys has called for a meeting with all its creditors even as it seeks to stay afloat amid liquidation threats from creditors.
in a public notice, Tuskys said that the meeting will be held online on Wednesday, November 11, at 2pm in a bid to agree on a debt settlement plan for all category of creditors.
“Tuskys has experienced business disruption over the last six months compounded by the COVID-19 crisis. In order to return business to normalcy, Tuskys has developed a business recovery and global debt settlement plan for all category of creditors. The company is now in the process of engaging all creditors in clusters in order to build consensus and support around this plan,” the notice read in part.
Among the creditors invited to the meeting include cleaning service providers, ICT providers, marketing, repairs and maintenance, security and loss control, staff welfare, printing and vehicle maintenance.
This comes at a time the retailer has closed at least 11 branches, dashing hopes for the creditors who are growing impatient with the retailer seemingly sinking.
In September, Tuskys was given 45 days by the court to pay its suppliers some Ksh248 million or risk liquidation.
The period is set to expire in less than a week, and Tuskys is yet to pay the creditors, which will open ground for liquidation.
The ultimatum was triggered in a case filed by electronics dealer Hotpoint and supported by 12 other creditor demanding their dues.
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 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.
Tuskys had banked its hopes on a Ksh2 billion capital injection from a Mauritius based investor for its turnaround, but has only received only Ksh500 million.
It is reported that the investor is demanding to take over the retailer, in case the loan is defaulted on, something that the shareholders are not comfortable with.