Home Business Misfortune Befalls Tuskys chain of supermarkets.

Misfortune Befalls Tuskys chain of supermarkets.

A visit to your local Tuskys supermarket will show several empty shelves, weary employees, and complaining customers.

Tuskys woes are evident in the faces of both their employees and shoppers. Employees have grown tired of explaining why your favorite brand is no longer available. Clients have grown weary, asking why they cannot find almost 60% of their shopping.

The once robust and busy aisles of the famous Tuskys is now an empty ghost town, from Kisumu, Embakasi, Rongai to Kitale. The pattern of empty shelves repeats itself.

Where have we seen this story before? Uchumi, Nakumatt, and, most recently, Ukwala. The misfortune of large retail supermarket chains seems to be almost scripted.

SUPPLIERS

The same suppliers who were the first to blow the whistle and cry foul on Nakumatt have done the same to Tuskys. They have grown impatient with delayed payments being the order of the day.

The Competition Authority of Kenya (CAK) has been at the forefront of the chain’s investigation. Rumors of misappropriation of funds and abuse of power have been rife. This has also pushed some suppliers to withhold their stocks.

CAK has reported delayed payment of goods to local suppliers in four branches. These delays were past their 90 days mark.

Tuskys has been ordered to pay all debts that are past 90 days immediately. This order came from CAK after investigations that started in April 2020. After a series of meetings, a review of the retails documentation was done, and a proposed debt settlement plan was reached.

INVESTOR

Tuskys admitted that they were negotiating with their leading suppliers to avoid the withholding of stock. The management has communicated that they were in talks with a strategic investor. This investor would come in with additional funding by August 1, 2020.

With this in place, the CAK gave a little leeway to the retailer. Although in a statement to the press, it insisted that there shall still be constant compliance checks done weekly and continued interrogation of the financial and management records.

Related news

Kenya declared World’s leading Safari Destination at Annual World Travel Awards, 2020

Kenya has been declared the World’s Best Safari destination for the 7th and 6th time in a row today, Saturday, November 28, 2020, during...

Government loses land to City tycoon

The Kenyan government has lost a multi-million land case to Nairobi based billionaire Mike Maina Kamau after the court of Appeal issued an order...

Mombasa investors transform boats into floating restaurants

Investors in Mombasa County have turned old dhows into floating restaurants to give local and foreign tourists a new hospitality industry experience. Most of the...

Trending

Sonko flies MCAs to Mombasa ahead of impeachment motion

In a bid to counter his impeachment motion hearing set for today, Nairobi Governor Mike Sonko flew over 40 MCAs to Mombasa. Reports have emerged...

Kenyan woman pockets 33M from Jack Ma

A Kenyan lady has emerged the winner of the second edition of Jack Ma Foundation in the Africa Business Heroes 2020, and she will...

All for clout! Bahati and Diana Marua stage break-up to promote...

Controversial musician Bahati and his wife Diana Marua have managed to fool Kenyans on social media over the past few days by perfectly staging...

Biden says he will not immediately withdraw tariffs imposed on China

Biden says he will not immediately withdraw tariffs imposed on China Image: Jason Lee / Pool / AFP ...

Biden wants to return to Iranian nuclear deal before resuming talks...

Joe Biden (Play) Image: Play / Internet United States President-elect Joe Biden wants to get his...

LoC, PSG: the reaction of Nasser Al-Khelaïfi

This Wednesday evening, Paris Saint-Germain struck a big blow. Indeed, the Parisians managed to win three goals to one at Old Trafford against...