Ondari Ogega | Nation Media Group
What you need to know:
Tuskys Supermarket failed to pay workers full salaries for July, highlighting the depth of the retailer’s financial woes.
Tuskys chief executive Daniel Githua has informed the workers union that the retailers is not in a position to pay full salaries in July due to its shrinking revenues occasioned by the Covid-19 pandemic.
The retail store is seeking billions of shilling from financiers and
equity partners as it fights closure of branches and frequent
stock-outs.
“In reference to your letter we further confirm that salaries for the month of July 2020 has been paid in part of up to 50 percent of the total,” said Mr Githua in the letter.
“Companies revenue has been on a decline ever since Covid-19 pandemic hit the country, making it impossible for the company to timely meet its financial obligation up to and including payment of salaries.”
In April, it sought to trim pay to staff by between 20 and 30 percent
through the reduction of employee work hours from 45 a week to 36.
Tuskys had informed the union that salaries for staff earning Sh49,999
and below had been reduced by 20 percent, a 25 percent cut for those
earning Sh50,000 to Sh99,000 and a 30 percent cut on salaries above
Sh100,000.
The Kenya Union of Commercial Food and Allied Workers (Kucfaw) moved to court to protest the move.
“We note that part of July 2020 wages/salaries are still outstanding to date and that some members did not receive the 50 percent,” said Kucfaw secretary-general Bonface Kavuvi in response to delayed payment of full salary.
Supermarket chain Tuskys says it needs immediate capital injection of Sh2 billion to survive in the short term as it scrambles to win back the confidence of suppliers and navigate a shareholder fallout.
Last week it reopened one of its outlets in Eldoret which was closed
over unpaid Sh14 million rent dispute. The retailer paid the landlord
Sh5.5 million before it was allowed to resume operations at the branch.
The emergency bailout quest was revealed to the owners of the family-owned retail chain during a board meeting of their investment vehicle Orakam Holdings on June 30, according to minutes seen by Nation Business.
Tuskys is seeking a strategic investor as one way to raise the funds in exchange for a majority stake under the rescue bid.
It is not yet clear how much the retailer intends to raise from new investors who are to take a majority stake in the company.
Tuskys chief executive Daniel Githua has informed the workers union that the retailers is not in a position to pay full salaries in July due to its shrinking revenues occasioned by the Covid-19 pandemic.
“In reference to your letter we further confirm that salaries for the month of July 2020 has been paid in part of up to 50 percent of the total,” said Mr Githua in the letter.
“Companies revenue has been on a decline ever since Covid-19 pandemic hit the country, making it impossible for the company to timely meet its financial obligation up to and including payment of salaries.”
The Kenya Union of Commercial Food and Allied Workers (Kucfaw) moved to court to protest the move.
“We note that part of July 2020 wages/salaries are still outstanding to date and that some members did not receive the 50 percent,” said Kucfaw secretary-general Bonface Kavuvi in response to delayed payment of full salary.
Supermarket chain Tuskys says it needs immediate capital injection of Sh2 billion to survive in the short term as it scrambles to win back the confidence of suppliers and navigate a shareholder fallout.
The emergency bailout quest was revealed to the owners of the family-owned retail chain during a board meeting of their investment vehicle Orakam Holdings on June 30, according to minutes seen by Nation Business.
Tuskys is seeking a strategic investor as one way to raise the funds in exchange for a majority stake under the rescue bid.
It is not yet clear how much the retailer intends to raise from new investors who are to take a majority stake in the company.
No comments :
Post a Comment