Tuskys Empty Shelves: It seems that the collapse of Tuskys Supermarket is imminent unless a rescue strategy is deployed fast. Over the past few months, customers have been complaining that the retailer has been running on empty. But the full scale of the problems at Tuskys has now been amplified by the empty shelves. Take a look at some of the shocking photos from the retailer that were taken by a customer identified as Simon Omondi.
Tuskys supermarkets paid suppliers Ksh2.7 billion in a bid to beat a regulatory deadline to settle its obligations that had remained outstanding for months.
The competition authority of Kenya ordered Tuskys to settle supplier debt of Ksh1.2 billion by last week after a group of companies complained to the regulator about the retailer’s default.
This as the retailers outlets continue to operate with empty shelves as most suppliers suspend their services.
The troubled retailer Tuskys supermarkets has made a Ksh.2.7 billion to its suppliers following an order by the competition authority of Kenya.
This follows complaints filed by suppliers to CAK seeking the delayed payments from the retailer.
In a statement, CAK stated that following engagements with the authority, they were presented with a payment plan which will be honored as agreed, thereby reducing the debt progressively as confirmed through compliance checks.
“Any person who fails to comply with the order of the authority commits an offence. This matter remains under investigations and further orders will be issued as and when merited,” said CAK.
“With this background and our investigations, the Authority has established that Tusker Mattresses Limited is experiencing incidences of abuse of buyer power in the form of delays in payment of suppliers contrary to sections 24A(1) and 24A(5)(a) of the Act,” CAK wrote in a letter to the management.
“(Pay) the sum of Ksh396.2 million owed to suppliers of fast-moving consumer goods (FMCG) within 14 days from June 16, 2020. The sum of Sh499.1 million owed to non-FMCG suppliers within 30 days from June 16, 2020,” ordered CAK.
The retail chain is seeking to sell its stake to pay off its debts that stood at Ksh1.2 billion in June following intervention from the Competition Authority of Kenya (CAK) that is now surveilling the company’s every single move.
Tuskys Supermarket shareholders
1 John Kago 10.0
2 Samuel Kamau 17.5
3 Stephen Mukuha 14.5
4 Yusuf Mugweru 17.5
5 George Gachwe 10.5
6 Founder’s Daughter I 10.0
7 Founder’s Daughter II 10.0
The seven siblings took over the ownership of Tuskys in 2002 after the death of their father and the retail chain’s founder, Joram Kamau.
Mr Mukuha, Mr Mugweru, Mr Gachwe Sammy Gatei own a 17.5 percent stake in Tuskys each, according to disclosures in a previous court case.
John Kago, Mary Njoki and the late Mary Njeri own 10 percent stake each.
Details of the proposed transaction, including the size of capital to be raised, are yet to be disclosed.Tuskys is in talks with a private equity firm and an international retailer regarding the acquisition of the stake but the wrangles are likely to scuttle the deal or scare off the investors.
Once touted as the biggest retail outlet in the country, Tuskys supermarkets now seems to be following in the footsteps of the once great Nakumatt supermarket.
A check revealed that the retail chain is operating with empty shelves.
At the retail’s T-mall outlet most of the shelves where milk products, flour, soaps and detergents are stocked were empty.
Similarly, its Greenspan mall outlet also had many empty shelves with some employees disclosing to us that the store’s management promised to restock soon.
Its Ngong Road outlet seemed to the worst affected with almost half of its shelves empty as of Monday.