This archive report was first published on 25 August 2020.
On Tuesday, Chargless Auctioneers Limited shut down Tuskys Supermarket store in Eldoret, citing unpaid rent of Sh14 million over four months.
The move marks a significant escalation of Tuskys' financial troubles, which have been brewing for months. The retailer owes suppliers a staggering Sh6.2 billion and is currently seeking to sell a majority stake in a bid to raise cash and win back suppliers' confidence.
According to Chargless Auctioneers, Tuskys had been given 14 days to settle the rent arrears but failed to honour the agreement, prompting the auctioneers to shut down the store.
"This is the first time they have not settled the rent arrears. We had given them 14 days but they requested one more week. However, they have failed to honour their agreement, forcing us to shut," said a representative of Chargless Auctioneers.
The closure of the Eldoret store comes on the heels of a similar incident in Kisumu's United Mall, where a Tuskys store was temporarily closed over Sh26 million rent arrears.
For months, shoppers have complained of missing essential goods on Tuskys' shelves, suggesting that some suppliers are severing ties with the company amid a cash crunch.
Tuskys has been struggling to cope with the impact of Covid-19 restrictions, which have severely affected its cash flow. The retailer is racing to sell a majority stake to a consortium of a private equity firm and a foreign retailer to raise cash and pay suppliers.
From humble beginnings in Rongai town, Nakuru, in the early 1980s, Tuskys has grown into a giant retailer, but recent troubles have raised concerns about its future.
