Mauritius Fund: Troubled retailer Tuskys Supermarket has received a Sh. 2 billion capital injection from a Mauritius Fund. The name of the fund was however not revealed.
The retailer’s board said the lifeline is expected to help alleviate the firm’s current capital constraints impacted by COVID-19 and further reposition the business for increasing stakeholders’ value. “As previously communicated, we wish to reiterate our commitment to resolve the underlying working capital challenges quickly. This funding will provide the needed impetus to our overall capitalization journey,’’ Tuskys chairman Bernard Kahianyau said in a media statement.
Last week, the supermarket was forced to pay Sh. 15 million out of Sh. 26 million rent arrears for United Mall outlet in Kisumu County after auctioneers raided the premises. Speaking during the reopening of the Greenspan outlet, where a customer reward programme was also launched, Tuskys CEO Dan Githua termed the reward programme as a rebirth of Tuskys, saying that the retailer is on a recovery path with select branches now optimally stocked.
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”The restocking has been undertaken in conjunction with leading suppliers who have committed to the retailer on a win-win basis to the tune of Sh. 1.2 billion,’’ Githua said. Dubbed Tuskys Back-to-Back Sale, the promotion valued at Sh. 200 million is aimed at supporting loyal customers as the country battles the social-economic effects of Covid-19. On Friday, it relaunched its T-Mall branch.
Tuskys is the third mainstream local retailer in Kenya to face near collapse. Uchumi and Nakumatt, which were two of Kenya’s most prominent retailers have already folded.