CONSULTATION

Tuskys lines up meetings with creditors in revival plan

The meetings start next week Wednesday

In Summary

•The latest developments come after the High Court asked the retailer to engage its creditors on plans to settle its outstanding debts.

•The court this week issued orders of stay against attachment, sequestration, distress, or execution against the property of Tusker Mattresses Limited.

Customers shopping at the recently revamped Tuskys Malindi branch/
Customers shopping at the recently revamped Tuskys Malindi branch/
Image: ALPHONCE GARI

Local retailer–Tusker Mattresses Limited (Tuskys) will be meeting key suppliers and creditors starting next week, as part of its business revival plan.

The retailer, which has faced headwinds in recent times, mainly supplier debt in the wake of reduced business on Covid-19 effects on the economy, will start with meeting Fast-moving consumer goods (FMCG) suppliers on Wednesday.

It has also arranged meetings with fresh, FMCG, and general merchandise suppliers next Saturday and suppliers of its Mavazi clothing line (November 10).

It will have talks with its electronic suppliers on November 12 and labour union representatives, and labour outsourcing later on the same day.

Management will also be meeting and space-letting partners to sort out rent issues, in one-on-one meetings to be mutually agreed upon.

The latest developments come after the High Court asked the retailer to engage its creditors on plans to settle its outstanding debts.

On October 21, Justice Francis Tuiyott, sitting at the commercial and admiralty division of the High Court, Nairobi, issued orders of stay against attachment, sequestration, distress, or execution against the property of Tusker Mattresses Limited.

On Tuesday (October 27), the orders were extended to November 17, with the court directing that Tuskys engages its creditors.

“As part of its turnaround strategy and following the extension of a judicial reprieve against mounting creditors action by Justice Francis Tuiyott last Tuesday, the firm has lined up meetings with its staff unions, suppliers, landlords among other stakeholders,” Chairman Bernard Kahianyu notes in a statement.

He said the creditor meetings would provide an engagement platform to update all stakeholders on the business recovery plan.

The plan, which has been submitted at the High Court, Kahianyu said had been developed by the firm’s management team in conjunction with the transaction advisory firm consulting for the retailer in the capital raising exercise.

The first phase of the plan is anchored on a Sh2billion credit facility provided by the firm’s structured debt fund partner ahead of further equity investments to shore up the firm’s capital position.

The retailer, he confirmed had been forced to seek judicial protection following a spike in the number of legal actions facing the firm in various courts across the country.

“The court orders undoubtedly have provided much-needed relief, and we are glad that this also provides a platform for us to advance stakeholder consultations including the tabling of our business revival and a debt settlement plan with all our stakeholders commencing next week,” Kahianyu said.

He assured that the firm remains committed to meeting its part of the bargain by settling all amounts due to its creditors.