Tuskys in court over seized stock

Troubled supermarket Tuskys will be back in court Thursday morning to confirm whether an auctioneer who seized some of its goods has returned them as ordered by a judge.

Justice Francis Tuiyott had on November 26 directed Makuri Auctioneers to return the goods within seven days.

The retail chain moved to court seeking to have Joel Musya of Makuri Auctioneers and Pietro Canobbio committed to civil jail for disobeying a court order, directing auctioneers not to seize the Tusky’s goods, pending the determination of the petition.

In October, Justice Tuiyott barred the supermarket’s creditors and auctioneers from attaching its assets. The judge, however said the order does not affect Greenspan Ltd, which has sued the retailer over rent arrears.

“Having read the affidavit of Patrick Ogola sworn on 16th October 2020, I hereby order a stay of any attachment, sequestration, distress or execution against the property of the company pending further directions,” Justice Tuiyott said.

Tuskys later went back to court saying there were threats to seize and auction its go-down in Komarock, which holds its stocks and tools of trade and selling them would jeopardise plans of reviving the supermarket. There were also threats to auction goods at Oasis Mall in Malindi.

The supermarket revealed that secured Sh2.1 billion funding from a Mauritian firm and on September 18, the investors released Sh500 millions as commitment. The funds, he said went to pay rent arrears of Sh119 million, suppliers Sh112.7 million, settlement of old debts Sh219.8 million and payment of salaries, Sh48.5 million.

“Indeed, a portion of the creditors on record in this petition have benefitted from the part settlement of their debt owing to this initial tranche of the facility,” Mr Ogola said.

The lawyer said a significant portion of the funding paying its liabilities and the supermarket was granted 45 days to kick start the drafting, review and negotiations.