Tuskys CEO Chadwick Okumu, however, declined to disclose the details of the new deal until it’s sealed.
“That as is custom in similar transactions, the applicant is unable to disclose the identity of its investor or specifics surrounding the terms and conditions of the transactional documents before financial closing owing to a non-disclosure agreement,” Okumu stated.
A number of creditors had filed a petition in order to pile up pressure for the retailer to unveil the source of the funding, interest rate, repayment period and whether or not it is secured.
“The company has availed absolutely no evidence of alleged funding support. It has also not disclosed the financier, the amount expected or the terms of financing.
“The issue of financing is vague, ambiguous and totally lacks credibility,” part of the petition filed by the creditors stated.
The retailer has been experiencing financial woes in the recent past after losing more than 43 outlets within the country.
The supermarket’s total debts currently includes Ksh10 billion, a figure which almost led to the collapse of former retail giant Nakumatt.
Recently, Tuskys had announced up to 90 percent discount sale on selected inventory in majority of its branches in order to avoid liquidation. Among the assets put up for sale included furniture and electronics.
Okumu noted that the sale is expected to generate about Ksh911 million.
“This up to 90% Clearance Sale provides us with twin opportunities to express our gratitude to our stakeholders who have continued to stand with us under difficult operating conditions.
“It is also an opportunity to liquidate stocks and generate much-needed cash to fund operations at the ten running branches,†Okumu stated.
Source: KENYAGIST.COM
