Tuskys sells off ‘dead stock’ to save remnant operations
Tuskys has moved to dispose stocks from its closed branches as it seeks to raise funds to anchor remnant operations.
The troubled retailer is offering steep discounts of up to 90 per cent on select goods including furniture and clothing items in view of accelerating sales.
The sale is seen as an opportunity to unlock working capital to anchor the retail chain recovery plan.
“Proceeds will be ploughed back into the business to finance fast-moving lines in all active branches as a means of growing footfall further by expanding fast moving consumer goods (FMCG) product ranges,” said Tuskys interim CEO Chadwick Okumu.
The retailer’s current branch footprints stands at nine from a high of 64 at the start of 2020 with its financial plight having seen it thrown out of premises by landlords over rent arrears.
Tuskys complete turnaround is however premised on an ongoing litigation process in court under which several creditors have applied to wind up the retailer’s operations.
The enjoined suit comes up for mention on May 21 with its outcome effectively making or breaking the survival of the supermarket chain.
Tuskys has been persuading creditors to sign up to its turnaround plan which if successful will see the retailer clear outstanding arrears in three years time.
Some creditors have nevertheless separated themselves from the petition, filing their own suit to recover outstanding balances.
Landlords at Greenspan Mall and the Juja City Mall have for instance successful petitioned the courts to kick-out Tuskys and have auctioned stocks to recover due rent.
On March 18, the High Court commercial and tax division extended orders blocking creditors tied to the suit from attaching to Tuskys properties ahead of the hearing of the wind up petition next month.
Tuskys has sought a strategic investor to shore up the financing of recovery plans. Details of the investor on-boarding however remain scanty in spite of discussions for nearly one year to date.
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