Tuskys Greenspan Mall auction to proceed as planned

Tuskys Greenspan Mall auction to proceed as planned

Asset management firm ICEA Lion will proceed with the auction of Tuskys assets inside the Greenspan Mall after the retailer failed to honour rescheduled rent payments.

In a notice published in local dailies on Wednesday, Sannex Auctioneers contracted by ICEA Lion issued an auction notice scheduled for November 4.

The planned auction is expected to increase Tuskys woes in spite of receiving orders in its favour by the High Court to moot sporadic auctions.

The orders issued on October 21 and later extended to November 17 did not however cover its rental dispute with ICEA Lion as the pair had forged a new settlement deal.

Tuskys had previously applied for an injunction to restrain the sale under a distress for rent before striking a new deal that stopped the first auction set for the end of September.

In the September 21 deal, Tuskys agreed to settle arrears amounting to Ksh.24.2 million in three tranches to November 6.

The deal would have seem the mall manager receive Ksh.10 million on or before September 30 before receiving a similar pay out on or before October 10 and the balance in November.

According to court filings by ICEA, Tuskys failed to honour the payment of the September instalment forcing its hand in the issuance of the new auction on notice.

On Tuesday, Tuskys suffered another blow after it was evicted from the Kakamega Mega Mall evicted over longstanding disputes with the landlord.

In court, Tuskys faces a wind up petition by Hot Point Appliances Limited and the Syndicate Agencies Limited over outstanding debt from goods supplied and services offered.

Tuskys is said to be awaiting a new Ksh.2.1 billion debt injection to stabilise its operations.