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Kenya

Here’s How to Save Tuskys Supermarket From Collapsing

NAIROBI, Kenya, Nov 9- Economic analysts believe that only a significant infusion of equity capital by a strategic or financial investor can save Tuskys Supermarket. 

The analysts from Cytonn Investments say that the retailer’s ability to bounce back is unpredictable having failed to stabilize its operation.

This is even after the local chain alleged to have received Sh500 million in September 2020 to pay off landlords, suppliers, and facilitate other immediate working capital requirements.

The sentiments come a few days after the firm shut down more of its branches in the past week.

The supermarket chain closed 4 branches namely; Tuskys Magic branch in Nakuru Town, Tuskys Pioneer on Moi Avenue Street in Nairobi, Adams Arcade branch on Ngong Road and the Kitengela branch.

The closure now brings the number of the retailer’s operational outlets to 50 having shut down its Shiloah Kakamega branch last week.

The chain, which was at one time one of Kenya’s largest retailer, has now shut down 14 branches this year.

Tuskys has been battling financial woes amid supplier debts and mounting rent arrears despite securing financial support amounting to Sh2 billion from an undisclosed Mauritius-based private equity fund in August.

In October, the retailer got reprieve as the High Court barred Hotpoint, a home appliances and electronic dealer, from trying to dissolve the troubled chain, over a Sh248 million debt.

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“A significant infusion of significant equity capital by a strategic or financial investor is the way to go,” the analysts said.

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