NAIROBI, Kenya, Aug 26 – Tusker Mattresses said it signed an agreement with a Mauritius based fund to receive a capital injection amounting to over Sh2 billion, as part of its recovery plan.
In a statement, Tusky’s board of directors Chair Bernard Kahianyu said the funding will help alleviate the firm’s current capital constraints impacted by COVID-19.
He added that the funding, which is subject to fulfilling transaction condition precedents, will also reposition the business for increasing stakeholders’ value.
“This funding will provide the needed impetus to our overall capitalization journey,” he said.
News of the capital injection comes even as auctioneers shut down one of the company’s supermarkets in Eldoret on Tuesday over rent arrears amounting to over Sh14 million.
The rescue deal comes days after the supermarket chain said it is working on settling all debts owed to various creditors as part of its recovery plan.
The firm owes suppliers at least Sh6.2 billion and has agreed to pay 40 percent of the amount in over 2 years.
On Saturday, the firm said it had already paid Sh700 million to some suppliers, a step towards settling the debts.
Mid this month, Tuskys said it will restock its outlets to the tune of Sh1.2 billion to revive its business.
The Group’s CEO Dan Githua said the restocking will be done in conjunction with its leading suppliers, who have committed to support the firm’s business recovery plans.