Leading Retailer Nakumatt, that has been faced with financial woes in the recent past has signed a deal with competitor Tuskys Supermarket to all the retailer to access the suppliers through Tuskys supermarket’s good will and value chain.
The retailer had been facing a financial crisis and had failed to pay suppliers and the workers in recent months.
Nakumatt has been operating on a thin belt leaving the retailer almost empty due to lack of supplies.
The retailers financial problems have emerged from different challenges faced by the Supermarket, they had signed a agreement with the National social security fund to lease the whole building and lease to auxiliary clients who would benefit from the traffic brought by the supermarket however this deal came to a stand still when NSSf decided to close down part of the building in order to add more floors causing high paying tenants to vacate.
Nakumatt has also been faced shrinkage facilitated by unscrupulous employees who colluded with suppliers to pay for undelivered goods.
The Retailer had asked the government to help them out of the come out of the crisis as they blame the government for their troubles.
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Atoll Shah the managing director and his family have agreed to pledge its shares to the financiers for six years.
Tuskys will provide managers to provide leadership to Nakumatt but the brands will remain as they are currently.
It is yet to be confirmed how the merger will work with various cases filed against the retailer with suppliers asking for it to be wounded up.
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