Why 14 landlords don’t want anything to do with tenant Nakumatt
Fourteen landlords have indicated that they do not wish to continue with troubled retail supermarket chain Nakumatt as a tenant.
The landlords have also rejected the proposals for recovery advanced by the administrator of the financially strained supermarket, Mr Peter Obondo Kahi.
The fourteen landlords named in the statement are for Galleria, Nyali, Likoni, Karen Crossroads, Nakuru, Eldoret Household, Cinemax, Nanyuki, Highridge, City Hall, Diani, Malindi Meru and Highport.
“We are aware that 2 other landlords will not be renewing their leases with Nakumatt, which are soon coming up for expiry.
“A further 5 landlords have sued Nakumatt; leaving a balance of 9 stores which may possibly wish to continue with Nakumatt as a tenant,” continued the statement seen by Nairobi News.
The seemingly frustrated landlords who have been hosting Nakumatt supermarkets in their properties said their stern position was reached after consultation and review of the recovery proposals for Nakumatt.
“Several of us landlords developed our outlets on borrowed funds and we now stand at risk of having our properties seized by the banks following Nakumatt’s massive default.
“Furthermore 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, noted the landlords in their statement.
Nakumatt’s court-appointed administrator Mr Kahi took over management of the struggling retailer in January to shield it from its creditors during the short term road to recovery as it sought support of its suppliers.
Appointment of the administrator came after the company lost scores of its branches through evictions by landlords whom it owes millions of shillings.
Once the country’s largest supermarket chain, Nakumatt has been replaced at those branches by its competitors including new entrant Carrefour.