The auction set up for Tuskys Mall Greenspan following Sh30 million rent arrears has been put on hold.
The auction had been set up for September 22, 2020 where Sannex Auctioneers made preparations to have the Supermarket stock auctioned.
“They owe the landlord over Ksh30 million in rent arrears. The money has been pending for a long duration,” a representative from Sannex told Nation.
In new development, Tuskys is reported to have entered a new deal with Sannex Autioneers where it will clear the bill in two weeks.
Read: Tuskys Sends Home Hundreds Of Staffers As Financial Woes Escalate
The Tuskys Greenspan Mall auction came just a few days after the Kisumu branch in United Mall was raided and closed by auctioneers over rent arrears. The branch was however reopened a day later after Tuskys paid part of the rent and negotiated a deal with the landlord.
Last week, Hotpoint Appliances Limited filed a petition to declare the cash strapped supermarket chain insolvent. The petitioner is seeking to have the retailer liquidated in efforts to recover over Sh100 million owed for the supply of electronics.
Through an ad in one of the dailies, Hotpoint Appliances, through their lawyer, Macharia-Mwangi & Njeru announced that the petition will be heard in the High Court of Kenya at Nairobi Commercial and Tax Division in Insolvency Petition No. EO18 of 2020.
Read Also: Tuskys’ Eldoret Branch To Be Auctioned Over Rent Arrears
In Uganda, the chain retailer closed at least five branches leading to loss of jobs to hundreds of residents.
In August, the retailer announced that it had signed a Sh2 billion deal with a Mauritius based fund.
The deal with the Mauritius fund will see Tuskys inject fresh working capital which the retailer says, will help them in the short term.
“This funding will help alleviate our current capital constraints impacted by Covid-19 and further reposition the business for increasing stakeholder’s value,” read a statement by Tuskys chairman Bernard Kahianyu.
The retailer has been facing cash flow issues, struggling to pay its creditors, workers and suppliers.
Tuskys is also seeking to sell a majority stake to a private equity firm and an undisclosed foreign retailer as it struggled to stay afloat.
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