The downfall of giant retailer Tuskys Supermarket could happen sooner than expected, even as it shuts down more branches as cash flow issues worsen.
On Thursday, October 29, the retailer shut down three more branches including Tuskys Pioneer on Moi Avenue in Nairobi, Adams Arcade branch and its Kitengela store.
Tuskys Pioneer is the second branch in Nairobi’s CBD shut down by the retailer in less than one week, after the Ronald Ngala branch. The three make five the number of branches closed in one week, the fifth one being the Kakamega branch.
Other branches that have been closed by the retailer include Eldoret, Nairobi’s Tom Mboya branch, Kilifi, Kitale, K-Mall branch in Komarock and the Hakati branch in Nairobi.
The cash strapped retailer has in the past few months faced increasing challenges paying its workers, suppliers and bills such as rent.
Currently, Tuskys owes its creditors well over 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.