End of the road: Sh4.5 billion chokehold that killed Tuskys

Nakumatt Supermarket at West Side Mall in Nakuru on July 25, 2018. [File, Standard]

At the same time, Tuskys stated that it had inked seven sales agreements with Diamond Trust Bank and was in the process of signing a debt settlement agreement with the bank to settle its dues.

It told the court that it had devised a business turnaround plan that has been generating Sh55 million a month.

While pleading with the judge to allow it to live, Tuskys claimed that it had identified a way of raising Sh3.8 billion.

It argued that the only way to settle the stalemate was to allow it to enter an agreement with the unsecured creditors and Kenya Revenue Authority to settle its debts and stay afloat.

"Successfully achieving this last milestone will require the direction, skillset and business acumen of its directors and managers," the retailer argued, adding that it should be given a 12-month moratorium to enable it re-capitalise and re-grow its operations.

Sourcing funds

Tuskys had planned to pay the creditors by sourcing funds from the sale of its non-core assets, bridging working capital, sale of inventory and trading margins, and further capitalisation.

However, none of the plans worked.

It blamed the cases and creditors for scaring away investors. According to Tuskys, the cases made the revival plan difficult.