Business is not as usual inside the wholly Kenyan and privately held company owned by seven children of Joram Kamau, the founder of Tuskys who died in 2002.
Wrangling in court, the siblings have signed a demise letter for the retailer, running the business to the ground. The supermarket which boasts of having the most outlets in the country is looking at an early exit from the competitive Kenyan Market.
In court, Significant shareholder, Yusuf Mugweru, with a 17.5 per cent stake in Tuskys, claims his brothers are yet to disclose the whereabouts of some Sh1.6 billion that was the subject to a court suit and is also demanding a forensic audit of the retailer’s accounts covering the past eight years before signing any other deals that will inject money into the cash strapped business.
Another significant investor, Stephen Kamau, has, however, obtained court orders allowing the retailer to fast track a shareholder meeting to approve the injection of the new capital.
Mr Kamau had told the High Court in Nairobi that Orakam Holdings, the that Orakam Holdings, the investment vehicle which owns Tuskys 100pc needed to convene a meeting within 48 hours to save the retailer from collapse.
“That prayer 1 is granted save that the applicant shall issue a 7 (seven) day notice of the intended meeting,” Justice Francis Tuiyott said in the orders issued yesterday. The judge also allowed Orakam to hold the meeting via virtual means.
Tuskys is seeking to sell a majority stake to a consortium made up of a private equity firm and an undisclosed foreign retailer as part of efforts to raise cash to pay suppliers and win back their confidence.
Due to the rivarly between the shareholders, Mr. Kamau knew it was absolutely necessary to go to court and block the other siblings from simply obtaining ex-parte orders, which are issued without the other party being made aware of the instructions, stopping the meeting.
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