Tuskys fails to stop eviction from Kisii building

A bid by former retail giant Tuskys Supermarket to block its removal from a building in Kisii town has been rejected by the High Court.

Justice Patricia Gichohi dismissed the application by the retailer by upholding a ruling by a magistrate court delivered in March 2021.

Justice Gichohi said in the ruling that despite clinging to the insolvency proceedings pending before the High Court, Tuskys had written a letter in January 2021 stating its readiness to vacate the building and asked for time to clear its merchandise.

“Having considered the facts of the case as reiterated hereinabove, this court agrees with the respondent’s submissions and the learned trial magistrate’s finding that Liquidation Cause No. HCCCOMMINP/E018 of 2020 stayed any attachment, sequestrations, distress and executions against the property of the appellant (Tuskys) but did not stay the termination of the lease or re-entry into the suit premises by the respondent,” said the judge.

Jiwa Shamji Limited, the owner of the building in Kisii town, moved to court in 2020 arguing that Tusker Mattresses Limited, as the retailer is officially known, fell into arrears and by an order on November 26, 2020, the court directed Tuskys to move out of the suit premises within three days and allowed the owner to take over the premises.

Not satisfied, the retail chain sought orders to set aside the directive and also restrain the landlord from terminating the lease and block plans to auction its merchandise.

By a ruling dated May 11, 2021, the court found that the order sought by Tuskys was not barred by the orders in the liquidation case and thus allowed the building owner to remove the goods from the suit premises and take them to their last known address for safekeeping.

Aggrieved by the ruling, Tuskys appealed against the decision on the ground that the orders issued were contrary to the stay order issued in the liquidation case.

In a judgment in June last year, High Court judge David Majanja ordered the liquidation of the supermarket saying “It must now be put to death to stop the suffering of unsecured creditors.”

Justice Majanja declined an application by the retailer for more time to restructure and turn around the supermarket stating that “no meaningful purpose will be served if it is indulged or accommodated further by the court”.

The judge went ahead and appointed Kolluri Venkata Subbaraya Kamasastry as the provisional liquidator of Tusker Mattresses Ltd.

Read: Court appoints liquidator for debt-riddled retailer Tuskys

During its prime, the supermarket employed up to 2,600 people across its 53 outlets in the country.

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