Tuskys has announced that it has begun restocking struggling retail giant Nakumatt Limited.
The retailer stated that it had already finished restocking Nakumatt’s Village Market and Ukay branches in Nairobi with five more branches to go in phase 1 of the project.
Tuskys announced that the move was aimed at aiding Nakumatt’s recovery ahead of proposed merger deal that is awaiting approval.
It, however, noted the formal merger deal between the two retailers was not yet finalised.
[caption caption="Tuskys CEO Daniel Gathua"]
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In September, the two retailers announced a plan to sign a merger in a move aimed at preventing a total collapse of the cash-strapped Nakumatt.
The merger will see Nakumatt access stock from suppliers using Tuskys supermarkets' goodwill and value chain.
The two will be maintained as separate entities, but Tuskys will take over the management of Nakumatt.
According to sources close to the deal, the Atul Shah family will pledge their shares to financiers for a six-year period.
It was revealed in July that the company was almost collapsing under the weight of a massive Sh30 Billion debt.
Suppliers were owed Sh15 Billion, while 10 commercial banks were hunting them down as they were owed Sh8 Billion. The company also faced a bill for commercial paper that ran upwards of Sh7 Billion.
[caption caption="Nakumatt CEO Atul Shah"]
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