Retailer, Tuskys Supermarket owes Ksh 2.8 billion as debt to Equity Bank and Diamond Trust Bank, a setback to its efforts in turning around its dwindling fortunes.
In a disclosure to the court, the retailer’s financials presented as part of court filings in an ongoing suit calling for its liquidation, it owes DTB Ksh 2.5 billion, a term loan, overdraft facility, letters of credit & guarantee, higher purchase facilities, and insurance premium facilities (IPF).
It further owes Equity Bank Ksh285.1 million.
Consequently, It owes its creditors around Ksh 6 billion and hangs on Ksh2 billion capital injection from a Mauritius based firm on working capital. It is a race against time, as the retailer approaches the 45 days deadline given by the High Court on October 1 to clear Ksh 248 million in arrears or face liquidation.
The retailer has shut down 9 of its outlets and currently remains with 55 in operation.
“In our view, the continued shutting down of the retailer’s outlets is an indication that the retailer will need to mobilize more funds to stabilize its operations and ease the financial pressure,” Analysts from Cytonn Investments note.