Cash Crunch Force Tuskys Supermarket to Shut More Branches

Cash Crunch Force Tuskys Supermarket to Shut More Branches

Tuskys Supermarket CEO Dan Githua

Finding basic items like milk and sugar in Tusker Mattresses Supermarket (Tuskys) is getting tougher for consumers as liquidity woes worsen the retailer’s fortune.

The retailer in a paradox, begun by consolidating some of its branches in the country to contain the spread of the coronavirus. However, the retailer has been witnessing mounting rent arrears, supplier debts, and boardroom wrangles in their quest to receive the much-needed cash to stay afloat.

Consequently, its branch network has shrunk to 63 with the latest casualty being the Ronald Ngala outlet within Nairobi’s Central shopping street.

This brings to 9 the number of branches closed in 2020. The latest shutdown follows the closure of Greenspan Mall- Donholm in Eastlands Nairobi over KSh 30 Million rent arrears. On October 1, The High Court in Nairobi gave Tuskys 45 days to clear arrears amounting to Ksh248 million or face liquidation.

On the other hand, Naivas Supermarket has maintained its bullish stance with new openings. The retailer has announced plans to open 4 more retail stores to be located at Lifestyle Mall in Nairobi’s CBD, Rongai, and two other undisclosed locations. 

The space at Lifestyle Mall was previously occupied by the troubled Nakumatt Supermarket. This will bring the total number of the retailer’s outlets to 70 following the recent opening of its 66th outlet at The Waterfront Mall in Karen on 12th October 2020