KENYA – Troubled Nakumatt Supermarket has turned to Tuskys in bid to rescue its dwindling business.
The two retailers have signed a merger deal that will help revive Nakumatt whose shelves have been empty for a long time.
Nakumatt, with retail stores in Kenya’s major towns, will now access stock from suppliers using Tuskys supermarkets’ goodwill and value chain.
The brands will remain the same but Tuskys will provide managers to offer leadership.
It is understood that Atul Shah and his family has agreed to pledge his shares for six years to the 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,” a source familiar with the deal said.
It is not yet clear how the deal will be received in the face of the current court action in Kenya and abroad with some creditors seeking for its winding up.
September 17, 2017: The Standard