Nakumatt Holdings has reportedly reached an agreement with Tuskys to take over its management in a last minute deal expected to see the troubled retailer remain afloat
The agreement will see Nakumatt access stock from suppliers using the Tuskys supermarket goodwill and value chain.
This will go a long way in helping the chain restock as suppliers had shied away from supplying them due to mounting debts.
A source privy to the deal indicated the Atul Shah family, which has maintained a tight grip on the retailer, will step down and pledge their shares to the financiers for a six-week period.
Nakumatt has accumulated billions of shillings in debt under Shah’s watch.
The Tuskys team will then step in, one of the key assignments being dealing with suppliers who have been threatening to liquidate Nakumatt to recover their delayed funds.
The Kenya Retail Sector Prompt Payment revealed the retailer owes suppliers more than Sh40 billion in outstanding payments for goods delivered.
They findings released last week by the Industry ministry also showed some payments have been delayed for between 180 and 240 days.
The two chains will however remains separate entities.