Auctioneers have closed down the Tuskys Greenspan Mall over Ksh30 million rent arrears as they plan to auction Tuskys’ stock next Tuesday, September 22.
But Tusky’s problems have continued to pile after Hotpoint Appliances Limited filed a petition to declare the cash strapped supermarket chain insolvent last week.
Hotpoint wants to have the retailer liquidated in efforts to recover over Ksh100 million owed for the supply of electronics.
The distributor placed an ad in the local dailies through their lawyer, Macharia-Mwangi & Njeru where they announced that the petition will be heard in the High Court of Kenya at Nairobi Commercial and Tax Division in Insolvency Petition No. EO18 of 2020.
Tuskys has been closing most of its branches is an indicator of deep cash flow troubles at the giant retailer, which owes suppliers at least Sh6.2 billion.
As the management struggles to avoid a possible collapse, Tuskys is planning to sell majority stake to a consortium made up of a private equity firm and an undisclosed foreign retailer.
The retailer is set to raise Sh2 billion short-term debt from an unnamed private equity firm based in Mauritius to ease the financial pressure. This will give it more time to negotiate the sale of a majority stake in a transaction that could delay by six or more months.