Retail chain Tuskys has shut down three more branches, marking its latest retreat in the retail market on dwindling cash flows.
The branches shut include Tuskys Pioneer on Moi Avenue Street in Nairobi, Adams Arcade branch on Ngong Road and the Kitengela store.
Tuskys Pioneer branch is one of the very first branches opened by the retailer in Nairobi.
The closure of the three branches comes barely two days after the retailer shut down Shiloah branch in Kakamega indefinitely.
“It’s true the branches have been shut down. Unfortunately, I cannot disclose to you the reasons behind the closure of the outlets. Please get in touch with our chairman for more details,” said a highly placed source at Tuskys on condition of anonymity.
The closure of the branches is the latest for the retailer, which at its peak operated 63 branches in Uganda and Kenya, that has increasingly shrunk its geographical spread due to disputes with landlords over rent arrears.
Auctioneers in August closed the retailers Eldoret branch over non-payment of rent amounting to Sh14 million.
Chargless Auctioneers Limited, however, opened the outlet after the retailer deposited Sh5.5 million with the auctioneer, promising to clear the balance a few days later.
Tuskys store at the United Mall in Kisumu was also temporarily closed in August over Sh26 million rent arrears. The branch was, however, reopened for business after the retailer paid Sh15 million and promised to clear the balance at a later date. Unfortunately, the landlord, United Miller, terminated the lease agreement giving the retailer up to February 2021 to find a new location.
The retailer’s Greenspan Mall branch is set for auction on the 4th of November after a court failed to stop the auction that was suspended in early October. In a notice published in local dailies on Wednesday, Sannex Auctioneers contracted by ICEA Lion issued an auction notice scheduled for November 4.
The closure of the aforementioned branches, in Nairobi, is an indicator of deep cash flow troubles at the giant retailer, which owes suppliers at least Sh6 billion.
The retailer says it needs an immediate capital injection of Sh2 billion to survive in the short-term as it scrambles to win back the confidence of suppliers.
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