Tuskys Supermarket has entered into a deal with Nakumatt supermarket to take over the management of the company.
The troubled Nakumatt is looking to Tuskys to rescue it from total collapse. The deal sees Nakumatt accessing stock from suppliers using Tuskys supermarkets’ goodwill and value chain to stock the Nakumatt shelves that have been empty for a long time.
Though it is still not clear whether it is a merger, buyout or partnership, one thing is for sure; Tuskys will provide managers to offer leadership
According to BusinessDay Kenya, Nakumatt Managing Director Atul Shah and his family have agreed to cede shareholding to new financiers. “This is a home grown solution. The deal will allow Nakumatt access stock immediately and once it has stock then it can get the cash flows to remain afloat.”
Though the brands will still remain the same, this will be a bog boost to Tuskys brand which could make it the biggest retail chain in Kenya.
Nakumatt, a family-owned retailer is the largest in East Africa, with outlets in Kenya, Rwanda, Uganda and Tanzania. It has been beset with huge debts, experiencing stock-outs in many of its outlets in Uganda and Kenya.
It has not been able to secure new investors.
