Troubled retailer Tuskys has shut down its biggest branch in Nairobis CBD, the Tuskys Pioneer a week after closing Tuskys Ronald Ngala, still in the capital’s CBD.
Pioneer was among three branches closed on Thursday, October 29, including Adams Arcade branch on Ngong Road, and its Kitengela store.
The retailer has closed at least 11 branches this year alone, including Kakamega, Eldoret, Nairobi’s Tom Mboya branch, Kilifi, Kitale, K-Mall branch in Komarock and the Hakati branch in Nairobi.
Last week, High Court barred Tuskys’ creditors from attaching the chain’s properties for auction.
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 September, Tuskys announced that it had received Ksh500 million capital injection, part of the Ksh2 billion.
However it later emerged that the unnamed investor is demanding that the seven siblings who own Tuskys place all their shares as security for the loan, which they will have to cede in case they default the loan.
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.