Cash strapped chain retailer Tuskys has sent home at hundreds of employees as it struggles to stay afloat.
In a shocker letter addressed to the affected employees, the company said that it will pay their terminal dues on February 13, 2021.
“Due to the ongoing business realignments, Tusker Mattresses Limited hereby informs you that it will no longer continue to offer you employment and will terminate your employment contract with effect from September 22,” reads a letter from Tuskys Human Resources General Manager Francis Kimani.
Reports indicate that the most affected staffers are the unionised ones, who challenged the retailer over reduction of salaries by between 20 to 30 percent.
Tuskys currently has 6,000 employees in its 58 branches in Kenya and seven in Uganda.
On Tuesday, Auctioneers announced a public auction of Tuskys Eldoret branch on Wednesday, October 7, 2020, pointing out to the escalating financial woes.
“Under instructions received from our client, we shall sell the following by Public Auction: On Wednesday, October 2020 outside Tuskys Supermarket Wareng Premises in Eldoret town of Uasin Gishu County, starting from 11.30 am,” read the notice.
This is the fourth branch belonging to the retailer to face auction after Kisumu branch, Nakuru branch and Greenspan Mall (Nairobi).
Last week, Tuskys announced that it has received Ksh500 million capital injection, part of Ksh2 billion from a Mauritius-based investor.
In a statement by Tuskys CEO Dan Githua, the retailer said that part of the amount, Ksh321 million, will be used to pay landlords, staff, and suppliers.
“We have received the first tranche of the earlier announced Ksh2 billion credit disbursement today. This first tranche disbursed today amounts to Ksh500million and will cover immediate working capital requirements including partial settlements to our staff, suppliers and landlords among others. In particular the first tranche of the suppliers old debt amounting to Ksh321 million has been settled,” said Githua.
In August, Tuskys signed a Ksh2 billion deal with an undisclosed Mauritius based fund to inject the much needed capital to the troubled retailer.
“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholder’s value,” read a statement by Tuskys chairman Bernard Kahianyu.
In July, Tuskys shareholders agreed to sell a majority stake of the company and have been awaiting the acquisition of an investment suitor.
Children of Tuskys Joram Kamau among them Yusuf Mugweru, Mary Njoki, Sammy Gatei, Stephen Mukuha, John Kago and George Gashwe have been fighting for the control of their father’s company, something though to have rocked the stability of the retailer.