Tuskys Debt: Troubled retailer Tuskys Supermarket owes suppliers a total of Sh. 6.2 billion. This revelation has exposed the depths to which the retailer has sank. It has also further exacerbated fears that Tuskys is on its death bed. In the revelation, Tuskys has announced that it will pay its suppliers Sh. 2.4 billion over a two year period.
“Total trade supplier debt is Sh. 6.2 billion. As at August 6, 2020, 40 percent of this supplier debt has been rescheduled and the respective suppliers have signed individual agreements to reschedule the debt to periods between eight months and 24 months. Having these debts rescheduled and restructured, allows Tuskys time to reorganize cash flows and meet supplier obligations,” the supermarket said in a letter addressed to the Competition Authority of Kenya.
In the letter, Tuskys further said that its suppliers had agreed to supply goods worth Sh. 1.2 billion. Out of these, goods worth Sh. 200 million have already been supplied.
Early this month, the retailer had announced that it needed some Sh. 2 billion bailout for its immediate survival. “Tuskys’ current financial position is very weak and may not support the business for much longer. Tuskys requires immediate capital injection amounting to Sh. 2 billion,” the directors of the investment vehicle were told during a meeting that was held on June 30.
This board meeting was attended by sibling owners Stephen Mukuha, Sammy Gatei, Yusuf Mugweru and George Gachwe, who own a 17.5 per cent stake each in the retailer, and John Kago, Mary Njoki and Kenneth Njeri, who each hold a 10 per cent stake. Tuskys Debt.