The Tuskys Supermarkets chain has been accorded a reprieve after a high court in Nairobi rule barring its creditors from carrying out unceremonious auctions on the few of the chain’s branches that currently run.
Justice Francis Tuiyott of the commercial and admiralty section of the High Court in his ruling on Wednesday invoked an order necessitating the stay of any attachment, sequestration, distress, or execution against the property of the company pending directions to be issued on October 27.
The ruling will be instrumental in cushioning the chain from looming auctions planned on a number of its outlets in Komarock, Embakasi, and the one in North Airport Road.
Tuskys had sought the intervention of the court in stopping its property from being seized by the restless creditors who have been on the chain’s neck following accruing bad debts on supplies.
The retailer has gotten into the bad books of its suppliers who stopped supplies thanks to the many pending invoices yet to be settled.
In the recent past, Tuskys’ woes deepened after auctioneers confiscated its vehicles with the fired employees seeking legal redress on their three months unpaid dues.
Things had been believed to be looking up on the retailer after it reportedly secured a buoy from an anonymous Mauritius-based company that was committed to part with kes 2.1 billion in the name of a working capital which would help Tuskys stabilize its running as it planned on getting back on its feet.
The kes 2.1 billion would however be released in bits, having the first tranche bearing kes 500 million.
The funds have been applied towards immediate capital requirements including Ksh.119.7 million towards rent arrears, Ksh.112.8 million in supplier payments, Ksh.219.8 million in an old debt, and Ksh.48.6 million salary payments.