Struggling to survive in Uganda, Kenya’s Nakumatt and Tuskys supermarkets sign merger deal that will enable Nakumatt access stock from suppliers using Tuskys’ goodwill, TheUgandan can report.
Nakumatt is facing huge debt woes in Kenya and Uganda with several creditors surfacing to claim worth millions of shillings.
According to sources, the brands will remain the same but Tuskys will provide managers to offer leadership.
It is understood that Nakumatt owner Atul Shah and his family has agreed to pledge his shares for six years.
“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 told Kenyan media.
Last week, Uganda Revenue Authority commenced auctioning of Nakumatt Supermarket’s goods as it seeks to recover millions of shillings owed by the struggling regional retail chain.
The clearance sales at two of Nakumatt’s Kampala outlets, Bugolobi and Kamwokya, commenced last week even as the taxman said that talks are still ongoing with the retailer over possible recovery of US$71,000 dues.
Last month, URA took over Nakumatt’s operations in the country to give itself first priority on all income, as several creditors in Kampala and Kenya bay for the retailer’s blood.
