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Landlord locks Nakumatt beach branch

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The financial woes facing Nakumatt retail chain deepened as its Diani branch in Kwale County was closed down by last week its landlord over rent arrears.

A notice placed on the supermarket wall by South Coast Holding Limited states that the landlord has taken possession of the premises after Nakumatt Holdings Limited failed to honour promises to pay rent.

The store was popular with both local and foreign tourists who visit Diani, which has been voted as the best beach in Africa in four consecutive years.  The notice dated November 16, 2017 quotes a lease agreement that was executed in 2010 that provides landlord right of re-entry into the premises if the management is in rent default for seven days.

It says the supermarket had failed to honour promises to pay the rent and hence the decision to take possession of the premises.

“The term granted under the lease now stands absolutely terminated and the landlord now assumes control of the premises,” reads the letter.

The move caught the employees of the supermarket unawares as it was locked by the landlord just as they were opening for business. Some of workers who spoke anonymously said that the premises caretaker locked it at around 8:30am shortly after opening for the day.

It was not immediately clear how many months were in arrears or how much money the store owes the landlord. The struggling retail giant has since closed several other branches across the country and is working on a joint management deal with its rival Tuskys.

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BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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