Rentco East Africa Limited has moved to court seeking leave to repossess all specified movable equipment leased to the Tusker Mattresses Limited by virtue of a Lease Agreement dated 23 rd July 2019.
The lessor is also seeking orders stopping Tusker Mattresses, their agents or employees from possessing, ceasing or proclaiming entering into the Tusker premises and taking away the specified movable assets/ properties / equipment leased to them.
“Pending the hearing of this Application herein inter parties, a temporary injunction be issued against the Respondent by themselves, their servants, auctioneers, Receiver agents or Advocate, or any person acting under their instructions or any other Creditor by themselves or otherwise be restrained from selling by public auction or private treaty any proclaimed or attached movable assets/ properties / equipment leased to the Respondent by virtue of the Master Operating Lease Agreement dated 23rd July 2019,” states the applicant.
The applicant further seeks an order severing from the Tusker Mattresses assets and liabilities, their movable equipment leased to them by virtue of the Master Operating Lease
Agreement dated 23 rd July 2019.
They want the court to be pleased to grant them the orders sought to serve through the Nation newspaper and or Nation Business daily with wide circulation.
Rentco states that other creditors have proceeded to court seeking compensation of their owing amounts from crumbling Tusker Mattresses and there is a very high risk that the Creditors may proceed to be granted orders that attach the leased equipment from the Applicant on the belief that the said equipment form part of Tusker assets.
“The applicant, as a Lessor and owner of the leased equipment, cannot be expected to have its property subjected to attachment proceedings in order to repay debts owed by the Respondent to other creditors,” says Rentco
According to the company, failure to seek leave from the Honourable Court would baptize any action taken thereafter by the Applicant as an illegality.
“Having shown that the agreement between the applicant and the respondent was valid and secured by a promissory, the applicant should be granted leave to repossess all specified movable equipment leased to the respondent as the said property belongs to the applicant,” states the applicant.
Tusker Mattresses which owns the now dwindling retail chain Tuskys Supermarkets has been firing its staff even as they try to revive themselves. They have also shut down several branches as the cash flow crisis deepens.
The retailer operated 63 branches in Kenya and Uganda. They have been on the government watchlist for failing to pay suppliers on time.
Tuskys might join retail giants such as Nakumatt and Uchumi supermarkets who were Kenya’s retail giants a few years ago but collapsed for several reasons including mismanagement, theft among others.
