High Court appoints new liquidator for Tuskys
The High Court has appointed Owen Koimburi Njenga as interim liquidator for Tusker Mattresses Limited a move that signals the end of the once vibrant retailer.
Initially, Kolluri Venkata Subbaraya Kamsastry had been appointed as the liquidator to sell the remaining assets.
A liquidator is appointed when a company goes into winding-up and has the responsibility for collecting assets and settling all claims against the company before putting the company into dissolution.
A public notice placed in one of the local dailies, shows that Njenga’s appointment takes effect starting August 18 2023. He was appointed the liquidator by the Nairobi High Court, Milimani Commercial and Tax Division.
Tusker Mattress, which owns Tuskys Supermarkets, follows in the footsteps of other giant retailers such as Nakumatt and Uchumi that rose to their peak and then collapsed.
Listing on NSE
At its peak the retailer had over 50 branches and had set sights on listing at the Nairobi Securities Exchange.
Internal fraud, sibling rivalry, aggressive debt-fuelled expansion and fierce competition have been cited as some of the reasons for Tuskys’ collapse.
Tuskys traces its roots to Nakuru’s Rongai area where it was started as a small outfit by Joram Kamau, before growing to a retail chain with stores all across Kenya.
In the recent past, several retailers have either collapsed or quit the Kenyan market leaving analysts seeking answers as to what bedevils the retail industry in the country.
Ukwala, for instance, was acquired by Botswana’s Choppies which later exited the Kenyan market. French retail giant Carrefour and Quickmart have since taken up several prime retail spaces previously occupied by the collapsed supermarkets .
Last month, President Vladimir Putin seized Russian assets owned by Carlsberg and French yoghurt-maker Danone.
Earlier last week, the franchise owner of Domino’s Pizza signalled it would shut its Russian shops and put the business into bankruptcy. DP Eurasia said it would no longer try to sell the operation because of an “increasingly challenging environment”.
Russia has been targeted by a number of economic sanctions since its tanks rolled into Ukraine on 24 February 2022. Many household names decided to close their operations in the immediate aftermath of the invasion. Others, such as McDonald’s and Coca-Cola, faced pressure to exit Russia.
There has also been ongoing criticism for the ones that have continued business.
Yale University’s School of Management has been tracking which firms have exited and which have stayed. Those that remain include the likes of UK telecoms firm BT Group, and Lacoste, the upmarket French sportswear brand..