This archive report was first published on 25 August 2020.
On August 20, 2020, Chargless Auctioneers Limited shut down Tuskys Supermarket store in Eldoret due to unpaid rent of Sh14 million, exposing the retailer's deep financial struggles.
The store's closure is the latest in a series of troubles faced by Tuskys, which has been struggling to pay its suppliers on time. In May, the Competition Authority of Kenya ordered Tuskys to settle its overdue supplier debt of Sh1.29 billion by July 16.
According to a representative of Chargless Auctioneers, Tuskys had failed to honor its agreement to pay the rent, despite being given 14 days to settle the debt. The retailer had requested an additional week to settle the debt, but ultimately failed to do so.
The closure of the Eldoret store comes just days after auctioneers temporarily closed a Tuskys store at Kisumu's United Mall over Sh26 million rent arrears.
Tuskys has been facing financial difficulties for months, with shoppers complaining of missing essential goods on the retailer's shelves. The retailer has blamed the cash crunch on restrictions imposed to curb the spread of Covid-19.
As part of its efforts to raise cash and win back the confidence of suppliers and customers, Tuskys is racing to sell a majority stake to a consortium made up of a private equity firm and a foreign retailer.
