NAIROBI, Kenya, Sept 18 – Kenya’s biggest retailer, Tuskys, has signed a merger deal to rescue struggling Nakumatt Supermarket.
Though details remain scanty, Nakumatt will access stock to replenish the empty shelves from Tuskys suppliers based on the goodwill the later has with its partners.
Nakumatt will also use Tuskys’ supply chain as the two retailers look into ways of aligning their operations including management changes that will give Tuskys considerable decision-making rights in Nakumatt.
Industrialization Cabinet Secretary Adan Mohammed had, last week, suggested talks were at an advanced stage for a rescue plan for Nakumatt and Uchumi.
The two retailers have closed over 10 branches in the last six months, including outlets in neighboring Uganda and Tanzania.
Earlier, Nakumatt Managing Director Atul Shah said the supermarket needs Sh77 billion to recapitalize, blaming the government for its woes and then requesting the Government for a bailout, which the government declined.
Interestingly, it is Mr. Shah who tried to mediate between the five sons of Tuskys Founder, Joram Kamau, when an ugly sibling battle threatened to sink Tuskys in 2013.