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Debt-Ridden Tuskys in Deep Waters as Auctioneers Raid Store, Says Rescue Deal on Course

NAIROBI, Kenya, Sept 12 -Cash-strapped retailer Tusker Mattresses Limited, Tuskys, said Saturday that its Juja branch will continue to operate, a day after auctioneers raided the premise following a rent row. 

In a statement, the supermarket chain said the dispute is being resolved amicably with a promise to continue trading normally.

The row comes even as the retailer fired tens of its workers and closed some of its stores, among them the K-Mall outlet in Komarok.

Tuskys’ Chief Executive Dan Githua has attempted to shed some hope on the situation, saying the rescue funding it announced late August would indeed save the business.

On August 25, Tuskys indicated it had signed a term sheet that would see it receive Sh2 billion in new capital injection from an unnamed Mauritius-based fund.

“We assure you that the board is fully committed to the successful completion of the ongoing transaction and full recovery of the business, for the benefit of all stakeholders,” Githua said.

Tuskys owes in excess of Sh6 billion in debt to suppliers and other trading partners.

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