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Cash-strapped Retailer Tuskys Forced To Close Nairobi Outlet Over Rent Arrears

Struggling retailer Tuskys Supermarket on Friday closed an outlet in Nairobi’s Central Business District (CBD).

Tuskys Hakati was shut down after the landlord came knocking for rent.

It is not clear how much the branch owes in rent arrears but the landlord has allegedly threatened to auction goods.

Just this week, the retailer was forced to close a branch along Uganda Road in Eldoret and another in Komarock.

Last week, auctioneers descended on Kisumu branch over Sh26 million in rent arrears.

A day later, it’s doors were opened after paying Sh15 million with the promise of setting the remainder the next week.

The United Mall landlord has however terminated the Tuskys lease. They will be vacating the premises at the end of this year.

On Wednesday, Tuskys confirmed that it had signed a Sh2 billion deal with a Mauritius based fund.

The deal with the Mauritius fund will see Tuskys inject fresh working capital which the retailer says, will help them in the short term.

“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.

Tuskys woes have seen suppliers pull out resulting in under-stocked branches with customers losing confidence in the supermarket chain.

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.

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 Sh 30 billion worth of suppliers’ debt.

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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

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