This archive report was first published on 20 May 2020.
As the COVID-19 pandemic continues to ravage the world, Tuskys Supermarket has revealed that it is facing significant financial challenges. The supermarket has struggled to pay its suppliers, banks, and landlords, a situation that has raised concerns about the firm's financial stability.
According to a report published on May 20, 2020, Tuskys has written to its suppliers informing them that payment terms may not be honoured on the agreed timelines. The letter, dated April 30, 2020, was written by Tuskys CEO Dan Githua and stated that some supplier obligations may be deferred, impacting some suppliers.
As a result of the financial difficulties, Tuskys has taken drastic measures to stem losses. The supermarket has shut down some of its branches and merged others in a bid to reduce costs. In April this year, Tuskys closed three of its branches in the country, including Tom Mboya (Nairobi), Kitale Mega, and Digo Road (Mombasa).
Benard Kahianyu, the retailer's chairman, stated that the move to close the branches was temporary and aimed at ensuring the retailer continues serving customers while protecting them in the wake of the coronavirus outbreak. He noted that consolidating businesses in spacious branches would allow for better implementation of social distancing and personal hygiene measures.
