The High Court has issued a ruling for the liquidation of Tuskys Supermarket, also known as Tusker Mattresses, due to its overwhelming debt. Tuskys Supermarket, which was once the largest family-owned retail chain in East Africa, held a dominant position in the country. As of 2019, it operated a staggering 64 branches.
However, the current state of the supermarket is a far cry from its previous glory. The sole remaining outlet, Tuskys Imara branch located along Tom Mboya, stands as a mere shadow of its former self, with assets valued at 6 billion shillings.
Justice David Majanja, a Judge of the High Court, has made the decision that there is no prospect of reviving the retailer, given its liabilities surpassing 20 billion shillings. The petition for liquidation was initiated by Hotpoint Appliances Limited and garnered support from more than 12 other creditors.
Hotpoint Appliances, the petitioner, sought a declaration of insolvency for the financially distressed supermarket chain. Their objective was to liquidate the company and reclaim the outstanding debt of over 100 million shillings resulting from the supply of electronics.
Justice Majanja acknowledged that the insolvency petition had been ongoing for over three years since 2020, and he concluded that there was no viable chance of resurrecting Tuskys. The Judge noted that Tuskys did not contest the fact that it owed 19.7 billion shillings to its suppliers. In light of this, appointing a liquidator seemed to be the most sensible course of action, as it would potentially salvage some assets for the creditors who had lost faith in recovering their dues.
As a result, Kolluri Venkata Subbaraya Kamsastry has been appointed as the liquidator responsible for selling the remaining assets and utilizing the proceeds to settle the outstanding debts.
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