Tuskys 5-storey branch in Nairobi CBD auctioned for Sh650 million

Tuskys was once Kenya's largest retailer with 53 branches but now has fewer than seven open.

Tusky Supermarket Imara Branch

Tuskys’ largest shopping store in Nairobi CBD has been put up for auction and is set to be the highest amount recovered from the cash-strapped supermarket.

The Tuskys Imara branch that sits on the junction of Tom Mboya Stree and Accra Road is set to be auctioned on March 2.

According to credible information from the auction company, the 5-storey building is going for about Sh650 million.

We are selling the building where Tuskys currently operates along Tom Mboya Street in Nairobi on public auction and the asking price is Sh650 million,” said the source.

The money will be used to recover a Sh650 million loan taken in 2014 which has been defaulted.

An advert carried on the local dailies on Monday could be the first of many as creditors try to recover Sh19 billion from the supermarket.

The auction signals the closure of the supermarket branch unless the new owner considers investing in a retail store.

Tuskys was once Kenya's largest retailer with 53 locations but now has fewer than seven branches open due to stock-outs.

The supermarket has been attempting to sell a Sh2.1 billion controlling share to a consortium led by an unnamed private equity company in order to avoid bankruptcy.

However, the proposed sale has yet to be completed, and Tuskys has kept the terms of the agreement under wraps.

Tuskys' recovery is dependent on the sale of assets, the Sh2.1 billion, and debt restructuring to assure staggered payments to creditors.

Tuskys has fought the liquidation of the company, claiming that its assets are insufficient to pay out the bulk of its creditors.

Many of its stores have been taken over by competitors such as Carrefour and Naivas which have been expanding their market share.

The debt-ridden retail firm first blamed the onset of the Covid-19 epidemic for its problems but trouble was compounded by poor management, rapid expansion and a vicious fight among family members that own Tuskys.

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