Troubled retailer Tuskys is set to reduce its branch count by half as it seeks operational efficiency at a time it is struggling with cash flow issues that have brought the once vibrant chain to its knees.
As revealed during the hearing of two winding up petitions floated by Hotpoint Appliances and Syndicated Appliances Limited on Tuesday, the retailer revealed it will analyze the efficiency and locations of its current branches while making the decisions on which stores to cut off in the cost cutting exercise.
Through lawyer Patrick Agola, the retailer said that it is planning to reduce the chain’s current 52 stores by half to 25 branches.
The branch network reduction exercise is expected to result into more job losses at the retailer which has already declared multiple redundancies as its stores were closed by landlords over rent arrears.
Tuskys maintains that it is still locked with the Mauritius based fund having earlier reached an agreement in principle which will see the fund inject Sh2.1 billion in working capital to stabilize the retailer.
Hearings on the winding up of the troubled retailer are expected to continue in January 2021.
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