Tuskys Supermarket, also known as Tusker Mattresses Limited, is on the brink of losing assets valued at approximately Sh6 billion following the appointment of a liquidator by the High Court.
This development comes just three months after the court ordered the liquidation of the struggling retailer, which owes creditors a staggering Sh19.7 billion.
This decision marks a significant setback for one of Kenya’s largest supermarkets, which has been operating for over three decades.
In June, High Court Justice David Majanja ruled that there was no viable plan to rescue the once-thriving family business. This decision followed the failure to demonstrate a working strategy to recover and repay its creditors, dating back to 2020 when Hotpoint Appliances and other creditors filed for the retailer’s liquidation.
Despite having assets estimated at around Sh6 billion, Tuskys falls far short of covering its debts to former suppliers and other creditors. The appointment of a liquidator implies that the supermarket will lose these assets through an auction.
Among the supermarket’s well-known assets are its headquarters on Mombasa Road, Nairobi, and a five-storey building in Nairobi’s central business district (CBD), which housed one of its last remaining outlets among the once 63 stores during its peak.
The appointment of Owen Koimburi Njenga as interim liquidator by the High Court in Nairobi was published in the Kenya Gazette and local newspapers last Friday. Tuskys has faced financial difficulties since creditors began pursuing it in 2020.
Last year, Equity Bank sought to auction the five-story CBD-based building due to a Sh650 million loan the bank had provided to the retailer in 2014. The retailer’s attempt to contest Equity’s pursuit of the property was unsuccessful, with Justice Majanja ruling in favour of the secured creditor.
Earlier this year, Tuskys closed another CBD outlet on Kenyatta Avenue, leaving only the Tom Mboya Street-based branch as its last remaining outlet within Nairobi’s CBD. The closure was attributed to “unavoidable circumstances,” and shoppers were encouraged to support the Tom Mboya Street branch.
