Companies

Nakumatt row with Diani landlord deepens

Atul

Atul Shah, Nakumatt CEO. PHOTO | FILE | NMG

Nakumatt's landlord in Diani, Kwale County has been directed to file a response within ten days in a case in which the retailer wants South Coast Holdings restrained from using the firm's equipment.

Justice Anne Omollo directed South Coast Holdings Ltd, which evicted the supermarket from Diani Mall, to file a reply within the next ten days.

“It is clear that the defendant has had sufficient time to reply to the application, however in the interest of justice, I shall give the defendant an opportunity to present its case,” she said Justice.

The supermarket is seeking the orders pending hearing and determination of the application.

The space at Diani Mall has since been taken up by another retailer.

The struggling retailer, once the region's largest supermarket chain, exited the coast this year following closure of its Likoni branch which was its last remaining store.

Nakumatt claims it took possession of the Diani premises in 2009 for use as a supermarket with quiet and peaceful possession until last year when it ran into cash flow problems.

Through lawyer Mutiso Ngonze, the troubled retailer argues that as a result of the economic turbulence, two companies filed insolvency petitions seeking to liquidate it.

It further says that suppliers also started withholding supplies resulting in stock outs.

Nakumatt accuses South Coast Holdings Ltd of barring entry to the premises in November last year over a rent dispute, thus blocking customers from shopping at the supermarket.

The retailer argues that in January this year, South Coast Holdings Ltd unlawfully gained access to the premises through breaking and commenced trading, utilising fixtures, fittings, furniture and equipment belonging to the supermarket.

The supermarket says that unless the orders are issued, it will suffer substantial loss through wastage of its goods and disruption of its commercial enterprise.

The firm says all outstanding arrears prior to an ‘Administration Order’ given by the High Court in Nairobi remain subject of the administration and are only payable upon approval of the administrator’s schedules of payment by the creditors.

The application has been fixed for hearing on November 12.