The Tusker Mattresses Limited (TML) Board of Directors say they have secured a suppliers’ commitment to avail supplies for sale pending the conclusion of the capitalization effort.
Under this arrangement, suppliers have signed in on a short-term portal that will ring-fence their supplies and ensure timely payment for the same.
In a statement Tuesday Chairman Bernard Kahianyu says the option provides a much-needed lifeline for the business and secures a win-win stability option.
Kahianyu said that during the Orakam Holdings Shareholders board meeting last week,the shareholders also provided their approval for the progression of an ongoing strategic investor sourcing efforts, which is a crucial development and lifeline for the business.
The Shareholders also agreed to the acquisition of a majority stake in TUSKYS by any equity investor who will further provide strategic leadership for the long-term growth of the 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.” Said Kahianyu
He said that 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.
The Orakam Shareholders present during the meeting included: Mrs Mary Njoki Kamau, Mr Stephen Mukuha Kamau, Mr Yusuf Mugweru Kamau, Mr Sammy Gatei Kamau, Dr John Kago Kamau, Mr George Gashwe Kamau and Mr Kenneth Njeri.
The board added that the ongoing plans to recapitalize the business are proceeding on schedule.
The recapitalization of the business follows the 2017 successful restructuring of TML by establishing a corporate structure that separates the corporate ownership from management.
The chairman confirmed that all the stakeholders are committed to an amicable resolution of the capital strain facing the business. Noting that no effort will be spared to facilitate a swift resolution.
He at the same time implored all stakeholders to desist from engaging in step back antics that can erode gains already made.
The company is fully owned by the family of the TML Founder, the late Mzee Joram Kamau, through Orakam Holdings Ltd.