Workers of Tuskys Supermarket Wednesday morning went to the streets to protest non-payment of salaries.
“Most of us have not received our salaries since July, and we heard the supermarket got some Sh2 billion financing, they should pay us”, cried one of the workers.
The retail chain has been struggling to stay afloat.
Tuskys owes supplies over Sh6 billion shillings.
Over the last few months, some of its branches have been raided by auctioneers with others, struggling under the weight of lack of supplies, have been shut down.
In August, the Kisumu United Mall branch was briefly shut down for non-payment of Sh26 million rent arrears. It was reopened after the retailer paid Sh15 million of that amount.
The retailer’s Karen branch was last week raided by auctioneers and some goods carted away.
Greenspan Mall in Donholm estate was also closed by auctioneers pending auction of goods over Sh30 million rent arrears.
The funds secure from a Mauritius-based lender is not enough to put the retailer back in ‘good’ business. Out of the Sh6.2 billion owed to suppliers, Tuskys has said it will clear the amount in two years.
ALSO READ: Tuskys staff complain of non-existent, reduced salaries
Hiccups in the deal
However, the in the Sh2 billion financing plans, two minority shareholders scuttled plans; they rejected the idea and prefer to cash in on their 27.5% stake instead.
On Tuesday, the siblings voted to acquire the loan from an offshore fund save for Yusuf Mugweru who controls 17.5% of the stake in the retailer, and his sibling who controls 10%. The two want to sell their stake to the investor in question or any other buyer that shows concrete interest
The debt will be secured by shares of its investors controlling a stake of 72.5 percent, putting the shares at risk in the event of default.
This has thrown the recovery works into confusion.
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