Tusker Mattresses Limited’s suppliers trading portal topped the Sh1 billion turnover mark this week, a move that will steer its recovery efforts in the right direction.
In a statement, the retailer says the platform, which provides a supply and prompt payment platform for Tuskys suppliers, now accounts for more than 70 percent of the firm’s key suppliers.
In his update, the Group’s CEO Dan Githua said Tuskys has managed to successfully on-board more than 200 suppliers on the new trading portal including Tropikal Brands, Pwani Oil and Mountain Fresh Dairies among others.
Suppliers supporting Tuskys’ business recovery have been enrolled in the new business operating platform to guarantee prompt payments for stocks supplied.
Sales registered via the new suppliers’ portal enjoy end to end protection, and the funds held in a custodial account can only be used to settle supplier dues on a priority basis.
“As we re-launch Tuskys Malindi under the Tuskys Back-to-Back Sale customer rewards program, we are pleased to announce that the trading portal has now generated five supplier payment cycles amounting to more than Sh1 billion. We have no doubt that this portal is the future of retail trading and we are doing all we can to secure its entrenchment as our anchor platform for all our supplier engagements,” Githua spoke ahead of this weekend’s Coast Region branch relaunches in Malindi, Kilifi and Mombasa.
Mid last month, Tuskys kicked off a countrywide branch relaunch and customer reward programme to celebrate its suppliers’ backed recovery and restocking effort.
The restocking is being undertaken in conjunction with leading suppliers who have committed to support the retailer on a win-win basis to the tune of Sh1.2 billion.
This comes even as the troubled retailer comes under pressure from its workers’ union to clear salary arrears dating to July, way before it affected salary pay cuts.
Less than 2 weeks ago, the retailer said it signed an agreement with a Mauritius based fund to receive a capital injection amounting to over Sh2 billion to help it recover.
The firm’s board chair Bernard Kahianyu said the rescue funding will help alleviate the firm’s current capital constraints, which he said had been impacted by COVID-19.
The retailer has been heavily indebted and owes suppliers a total of Sh6.2 billion but says it has reached an agreement to pay 40 percent of the amount over two years.