Ongoing plans to recapitalise the Tuskys retail chain business are proceeding on schedule, this is according to the Tusker Mattresses Limited (TML) Board of Directors.
The recapitalisation of the TML business follows the successful restructuring of the firm in 2017 when a corporate structure that separates the ownership from management was established.
The company is fully owned by the family of TML Founder, the late Mzee Joram Kamau, through Orakam Holdings Ltd a body corporate with a head office at the Karen Office Park.
The board has clarified that the registered offices for TML remain at the Tuskys Head office along Mombasa road. According to the board, day to day management operations is handled from TML’s registered offices by a Management team led by the Group CEO and reports to the firm’s Board of Directors.
Within the corporate restructuring strategy, the last few weeks have provided renewed impetus and energy to the capitalisation effort with a number of crucial milestones including:
- The hosting of an Orakam Holdings Shareholders board meeting on 19th July 2020 at the Ole Sereni Hotel. During the meeting, the seven shareholders present, provided their approval for the progression of an ongoing strategic investor sourcing efforts, which is a crucial development and lifeline for the business.
- The Orakam Shareholders noded to the acquisition of a majority stake in TUSKYS by any equity investor who will further provide strategic leadership for the longterm growth of business and for the benefit of all stakeholders. The TML Board of Directors together with a team of transaction advisors are currently evaluating the various offers with the aim of concluding the recapitalization of the business in the shortest time possible.
- As the strategic investment option proceeds, the Management team has also been actively engaging business stakeholders with the Board’s support. The stakeholders include retail merchandise suppliers, landlords, staff, among other priority partners.
TML has secured a suppliers’ commitment to avail supplies for sale pending the conclusion of the capitalisation effort. Under this arrangement, the management says, suppliers have signed in on a short-term portal that will ring-fence their supplies and ensure timely payment for the same.
Tuskys Chairperson Bernard Kahianyu assured that all the stakeholders are committed to an amicable resolution of the capital strain facing the business.