Tuskys Sells Assets to Avoid Liquidation

Tuskys Supermarket has decided to sell some of its branches assets to avoid liquidation to pay over Ksh 1.02 billion owed to creditors.

The more than 60 creditors had applied to have the retailer liquidated due to  inability to clear debts.

Tuskys had earlier revealed that it opted to sell its assets following their delay in receiving a Sh1.6 billion debt from an undisclosed Mauritius firm.

The supermarket has also revealed that it plans to sell non-core assets like fixtures, furniture and fittings in 19 branches which have mostly been shut by landlords for rent arrears.

According to documents filed in the High court, the sale is expected to generate about Sh911 million that will be used to pay off some of the debts.

Tuskys had requested the court to postpone the liquidation cases for one year and allow it to continue repaying the debts, arguing that its business is still commercially viable and its financial position is still redeemable.

However, Hotpoint Appliances, one of the leading creditors pushing for liquidation, argued that the petition for liquidation should proceed. Hotpoint added  that no financial adviser or secured creditor, including Tuskys’ primary bankers has come forward to back its revival plan.

By Fatiha Shabir