The woes facing Tuskys don’t seem like they will abate anytime soon after the retailer shut down three more branches which deals a fresh blow to the management’s hopes of restoring the chain to its former glories in one piece and giving rival chains a free run at claiming the stores located in prime areas within Kenyan cities and towns.
On Thursday, the retailer shut down Tuskys Pioneer on Moi Avenue Street in Nairobi, Adams Arcade branch on Ngong Road, and its Kitengela store located two kilometres from Namanga.
This comes a week after the retailer shut down its Ronald Ngala branch in the Nairobi Central Business District and two days after the retailer closed its Shiloah branch in Kakamega indefinitely.
So far operations have stopped in various Tuskys branches including at the K-Mall branch in Komarock and the Hakati branch in Nairobi. The retailer has also closed branches in Eldoret, Kilifi, Kitale, and Mombasa.
In April this year, the retailer also shut down its Tom Mboya branch following the outbreak of COVID-19 in the country.
Tuskys appeared to have gotten reprieve after the High Court barred its creditors from attaching the chain’s properties for auction last week.
Following an application filed through advocate Patrick Onyango Ogola, the retailer had under a certificate of urgency sought orders against the continued attachment of its properties and freezing of its accounts by various creditors.
The application Ogola said in his affidavit was a protective measure aimed at preserving the company’s assets from unlawful distress and execution.
In his ruling, Commercial Court Judge Francis Tuiyott provided an order barring several creditors listed in court documents from proceeding to effect auction and related actions against the retailer.
The judge further explained that the order does not affect Greenspan Limited. The retailer closed one of its outlets in the mall earlier this year after rent arrears accumulated to Ksh30 million.
Three months ago, the retailer indicated that it is in negotiations with an offshore fund to sell some stake with the management indicating that the proceeds would be directed to recapitalize the business even as some siblings in the family-owned business preferred to sell their stake instead.
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