An auctioneer has put up for sale two properties belonging to collapsed supermarket- Tuskys to recover a debt of Sh320 million owed to Diamond Trust Bank (DTB).
Dalali Traders Auctioneers put up for auction a commercial property in Machakos county and a townhouse in Karen area, with the auction scheduled for January 28, 2025.
The property in Machakos is registered in the name of Tusker Mattresses Ltd, and was initially known as Tuskys Athi River branch, sitting on 2.493 acres.
“The property comprises of a double volume supermarket with semi-detached triple storey office block. Main services water and electricity are connected to the property while drainage is to a septic tank,” the notice by the auctioneer stated.
The second property targeted for sale is situated in Nairobi’s Karen areas and identified as Great Valley Villas, near Karen Shopping Centre.
“The property is situated within Great Valley Villas, a development of nine identical town houses and accompanying services like gardens, playing grounds, parking grounds and other amenities developed as a gated community,” the auctioneer said.
The property, according to the auctioneer, is registered in the name of George Gashwe Kamau who is a member of the family of the late Joram Kamau who founded the collapsed retailer. Dalali Traders added that the property is a double storey five-bedroom all ensuite town house with an “attic floor, a double garage and staff quarters”.
The former retail giant was put under liquidation in May 2023 after the High Court declined more time to allow the management restructure and turn around the supermarket.
“Therefore, no meaningful purpose will be served if it is indulged or accommodated further by the court,” Justice (late) David Majanja said in his ruling on May 31.
During its prime, Tuskys employed up to 2,600 employees across its 53 outlets in the country.
The supermarket chain started experiencing trouble in 2011 when shareholders, who are all siblings, disagreed over the direction of the retail chain.
Then, Mr Yusuf Mugweru, accused family members of mismanagement and even attempted to wind up the retailer. Three of his siblings –John, Stephen and George— accused him of attempting a takeover the company through the back door.
Hotpoint Appliances moved to court in 2020 seeking to liquidate the supermarket chain over a debt of Sh248 million.
The creditor was soon joined in the petition by Rositalia Ltd and Syndicate Agencies Ltd, all seeking to liquidate the once retail giant over Sh11.2 million and Sh30.8 million, respectively.
The number of creditors later ballooned to 42 with cumulative claims of Sh4.5 billion. Other suppliers included Brookside Dairy Ltd, Sh127 million, Rentco Africa ltd Sh500 million, LG Harris (EA) ltd Sh22 million, Jeff Hamilton (K) ltd Sh10.5 million and premier foods Industries Ltd Sh27.8 million.
The supermarket had come up with a restructuring plan that included tapping a strategic investor from Mauritius for Sh2.1 billion and sale of Tuskys’ assets worth Sh911 million.
Tuskys has hinged its recovery on the assets sale, the Sh2.1 billion and restructuring of its debts to ensure staggered payment to creditors and suppliers owed nearly Sh20 billion.
Equity Bank had obtained the court’s permission to sell Tuskys prime property on Tom Mboya Street but the supermarket obtained temporary orders suspending the auction, arguing that the building was worth more than what Equity was seeking.
The property, where one of the retailer’s remaining only six outlets operates, was charged to the lender to secure a loan of Sh640 million in 2014.