Two more Tuskys branches shut down

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The retailer has been drawn into a rent row with its landlords following months of unpaid arrears.

This follows a recent shut down in  Kisumu United Mall branch on Thursday last week which was locked when passengers were caught off guard while shopping .

The Kisumu branch was however reopened later on Friday following a partly offset of the rent arrears by management.

Tuskys has so far reported the migration of 186 suppliers to the platform. However not all suppliers have been on board with the plan.

According to sources who spoke to Citizen Digital, large players such as Bidco Africa are yet to resume supplying Tuskys shelves by pinning such action on the payment of a quota of its outstanding debt to the manufacturer.

“The Tusker Mattresses Ltd Board of Directors is pleased to confirm that we have signed terms of agreement with a Mauritius based fund for the provision of a financing facility amounting to just over KES 2.0 billion subject to fulfilling transaction condition precedents. This funding will help alleviate our current capital constraints impacted by COVID-19 and further reposition the business for increasing stakeholders’ value,” the retailer said in a statement.

Tuskys shareholders had previously approved the sale of a majority stake to an investor who would steady the troubled ship.

The retailer did not disclose the switch of stance from an equity to a debt investment.