Tuskys Stops Rival Naivas from Taking Over Greenspan Mall Space

  • Tuskys Supermarket has declined to surrender its space at Donholm Greenspan Mall despite struggling financially
  • The retailer, which was once Kenya’s top chain, was auctioned by owners of the mall in November 2020 due to non-payment of KSh 25.9 million in rent
  • Stanlib Fahari I-REIT, which owns the mall, has been given the greenlight by the court to sue Tuskys to surrender the lease

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Cash-strapped Tuskys Supermarket has refused to surrender its space at Donholm Greenspan Mall, preventing Naivas Supermarket from taking over the premises.

Tuskys has stopped its rival Naivas from taking over its space at Greenspan Mall.
Tuskys Supermarket. Photo: Kenyan Wallstreet.
Source: Twitter

Tuskys, which was once Kenya’s top retailer, was auctioned by the mall owners in November 2020 due to non-payment of KSh 25.9 million in rent.

The chain’s ongoing financial problems forced it to cut the number of stores to 10, down from over 50 stores it owned at the height of its operations.

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According to Business Daily, the company also lost employees, customers and suppliers as its cash problems worsened with total debts, among them bank loans, amounting to over KSh 10 billion.

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Exit from Greenspan

Due to its financial struggles, Tusky was supposed to exit Greenspan Mall, allowing Naivas to take over the strategic space in the heart of the crowded Eastlands area.

The publication further reveals that Stanlib Fahari I-REIT, which owns the mall, has been given the greenlight by the court to sue Tuskys to surrender the lease.

“I am urged by Greenspan to allow them to commence court proceedings against the company to compel the execution of the surrender. And I see no reason not to do so,” High Court Judge Francis Tuiyott ruledd.

Naivas expanding

Tuskys’ woes continued even as Naivas went on expansion spree, reaching 78 stores by December 2021.

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As reported by TUKO.co.ke, the retailer recently increased its footprint in Nairobi’s City Centre after taking over Uchumi Supermarket’s previous space along Aga Khan Walk.

The retailer has also opened a new store in Malindi Mall, taking up space previously occupied by Nakumatt Supermarket, a franchise that has since collapsed.

Naivas also recently opened a new outlet in Juja City Mall, taking up 37,000 Square Feet of prime retail space that Tuskys Supermarket previously occupied.

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Source: Tuko.co.ke

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