Tuskys pays Ksh.700M to suppliers as it begins settling claims


Tuskys pays Ksh.700M to suppliers as it begins settling claims
Bidco Africa Chairman Vimal Shah and Tusker Mattresses Group CEO Dan Githua at Tuskys T-Mall on August 21, 2020 PHOTO | COURTESY

In Summary

  • Tuskys branch at the United Mall in Kisumu has subsequently re-opened following a partly settlement of rent arrears that forced an abrupt close of the outlet on Thursday.
  • Citizen Digital has also learnt that the retailer is finalizing with a strategic investor who has signed a termsheet signaling progression in what will close in the purchase of its majority stake.
  • The kin of founder Joram Kamau is expected to cede majority control of the retailer in the deal. 

Tuskys Supermarket has disclosed the payment of Ksh.700 million to suppliers following its roll out of a new trading platform in July.

The payments made in three cycles running between July 1- 15, July 16-30 and August 1-15 represents the retailer’s attempt to keep suppliers to its side following prior non-payments.

Further, the retailer has reported the on-boarding of 186 suppliers to its new custodial trading arrangement, a number representing 62 per cent of its target of 300.

“The portal development has continued in line with requests from suppliers. To date, we have handled 46 improvement requests. We are also working on the following improvements which we are keen to deliver by 31st August,” said Tuskys CEO Daniel Githua.

The retailer is now aiming to include landlords in its new trading arrangement is a wider attempt to bring back harmony to its business and supply chain partners.

The launch of the new platform has facilitated the restocking of goods at its stores around the country as suppliers resume deliveries.

Tuskys branch at the United Mall in Kisumu has subsequently re-opened following a partly settlement of rent arrears that forced an abrupt close of the outlet on Thursday.

In July, the retailer disclosed the payment of Ksh.2.77 billion in supplier dues to the Competition Authority of Kenya (CAK) following an investigation by the competition’s arm on supplier non-payment.

Tuskys later revealed Ksh.6.2 billion in trade liabilities.

The retailer is now hoping to tap a strategic investor to steady ship and escape the jaws of insolvency which would strike should creditors launch an official wind up petition.

Citizen Digital has also learnt that the retailer is finalizing with a strategic investor who has signed a termsheet signaling progression in what will close in the purchase of its majority stake.

The kin of founder Joram Kamau is expected to cede majority control of the retailer in the deal.

Stephen Mukuha, on of the retailer’s shareholders has retaliated the supermarket willingness to clear pending arrears.

“I promise you that for as long as I live, I shall ensure that all our debts to you are fully settled to the last coin,” he said.

For Citizen TV updates
Join @citizentvke Telegram channel



Video Of The Day: | BULLDOZERS FOR SANITIZERS | Families remain in the cold after evictions from Kariobangi sewage estate

Avatar
Story By Kepha Muiruri
More by this author