Tuskys reaches out to service providers over debt
Lewis Njoka @LewisNjoka
Troubled retailer Tuskys Supermarkets has reached out to its service providers for consensus on a debt settlement and recovery plan in a bid to save the heavily- indebted business from collapse.
It held an online consultative meeting with all its service providers over the matter yesterday following an invitation contained in a notice dated November 9.
The meeting, according to Tuskys, sought to return the business to normalcy following six months of business disruption a situation worsened by the ongoing Covid-19 pandemic.
Business recovery
“Tuskys has developed a business recovery and global debt settlement plan for all category of creditors.
The company is now in the process of engaging all creditors in clusters in order to build consensus and support around this plan,” said Tuskys in the notice.
Service providers invited to the meeting included cleaning, ICT, Security, printing and vehicle maintenance service providers among others.
Tuskys has in recent past faced serious financial challenges, a situation that has seen it close several branches and some of its properties auctioned.
Last month, the retailer got a reprieve after the high court stopped creditors from sporadically auctioning its properties, an order that saved three of its branches from imminent auction.
Early October, Garam Auctioneers put up a notice in the dailies to auction three of Tuskys outlets comprising Komarock, Embakasi and Airport North Road branches.
Credit facility
Tuskys turnaround plan heavily depends on a Sh2.1 billion credit facility, from a Mauritius-based private fund which will be used as working capital to stabilise operations.
