Business

Nakumatt landlords want retailer out of their premises

@zachuodho

Fourteen landlords have stated they don’t want Nakumatt’s continued tenancy or support the retailer’s recovery proposals.

In a statement issued yeaterday, the landlords said they are aware that two other landlords will not be renewing leases with struggling retail chain which are set to expire soon.

“Another five landlords have sued Nakumatt, leaving a balance of nine stores which may possibly wish to continue with Nakumatt as a tenant, a statement signed by Anish Doshi, landlord, City Mall in Nyali said.

According to Doshi, they have made their decision public so as to avoid influencing any ongoing litigation or dealings.

The 14 landlords house Nakumatt premises in Galleria, Nyali, Likoni, Karen Crossroads, Nakuru, Eldoret Household, Cinemax, Nanyuki, Highridge, City Hall, Diani, Malindi, Meru and Highport (properties).

Recently Nakumatt administrator Peter Kahi presented to creditors, including the landlord, a roadmap to revive the struggling retailer. “Our position has been reached following detailed consultation and an objective review of the recovery proposals. We note that the Nakumatt/Tuskys deal has fallen through with no viable alternative offered, leaving us with no other conclusion than that Nakumatt has no hope for recovery,” the landlords said.

Doshi said most landlords had developed their property on borrowed funds which they now say risked being seized by the banks following Nakumatt’s massive default on rent.

“Due to Nakumatt’s failure to adequately stock its shelves, footfall within our properties has fallen drastically and this has affected other tenants, leading to significant losses and a wider risk of bank default and job losses being visited on these and other third parties.”

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