Troubled retailer Nakumatt has taken to court its lease dispute
with the upmarket Junction Mall, which was Monday restrained from
evicting the supermarket chain from its premises.
with the upmarket Junction Mall, which was Monday restrained from
evicting the supermarket chain from its premises.
Nakumatt
accuses the management of the Junction Mall of evicting it as an anchor
tenant in breach of a September 15 joint agreement with the Junction
Mall owners and management.
accuses the management of the Junction Mall of evicting it as an anchor
tenant in breach of a September 15 joint agreement with the Junction
Mall owners and management.
But the Junction Mall
owners and Knight Frank, which manages the shopping complex, dispute the
claims and instead accuse the retailer of not complying with a lease
agreement that stipulated requirements for its continued tenancy.
owners and Knight Frank, which manages the shopping complex, dispute the
claims and instead accuse the retailer of not complying with a lease
agreement that stipulated requirements for its continued tenancy.
The
cash-strapped retailer Monday disowned a public notice released on
Saturday, indicating that Nakumatt had relinquished its rights over the
premises pursuant to a surrender dated September 15 this year.
cash-strapped retailer Monday disowned a public notice released on
Saturday, indicating that Nakumatt had relinquished its rights over the
premises pursuant to a surrender dated September 15 this year.
Nakumatt
claimed Monday, in a statement, it had complied with the contents of
the agreement including paying a Sh20 million fee to the Junction Mall
owners.
claimed Monday, in a statement, it had complied with the contents of
the agreement including paying a Sh20 million fee to the Junction Mall
owners.
Under
the plan, Nakumatt was supposed to provide a clear strategy on how it
would address perennial stock outs at its Junction branch by December 1,
a situation owners felt was affecting other business units.
the plan, Nakumatt was supposed to provide a clear strategy on how it
would address perennial stock outs at its Junction branch by December 1,
a situation owners felt was affecting other business units.
Nakumatt was also expected to pay up a Sh20 million fee to the Junction.
“We
have taken verifiable steps to ensure that the premises are adequately
restocked by December 1, 2017, including by providing approximately Sh64
million of stock to the branch,” Nakumatt said in a statement.
have taken verifiable steps to ensure that the premises are adequately
restocked by December 1, 2017, including by providing approximately Sh64
million of stock to the branch,” Nakumatt said in a statement.
But Knight Frank, which manages the mall, disputed Nakumatt’s assertions and defended its actions of locking out the retailer.
“Nakumatt
Holdings did not meet all the terms stipulated in the agreement by the
Surrender Date of September 30. A payment of Sh20 million by September
30 was just one of the conditions. It also needed to give a written plan
by this date showing verifiable steps of how it would restock by
December 1, among other terms,” the property manager said in a
statement.
Holdings did not meet all the terms stipulated in the agreement by the
Surrender Date of September 30. A payment of Sh20 million by September
30 was just one of the conditions. It also needed to give a written plan
by this date showing verifiable steps of how it would restock by
December 1, among other terms,” the property manager said in a
statement.
“The Junction’s actions are therefore in accordance with the stipulations of the surrender agreement….”