Troubled retailer Nakumatt will on Wednesday next week know whether it will continue to be a tenant at the upmarket Junction Mall.
The retailer is fighting a bid by the mall’s owners to shut down its premises following alleged breach of the tenancy agreement.
Nakumatt yesterday urged High Court Judge Joseph Onguto to restrain the Junction Ltd from evicting it, saying there is already in place an order issued on August 28 stopping all creditors from interfering with its management and operations.
Under the law, property belonging to a company or individual facing insolvency proceedings in court, as is the case with Nakumatt, is protected from attachment for purposes of recovering the debt.
The Junction Ltd, however, says that it is currently facing huge losses and that there is no guarantee Nakumatt will be able to compensate it.
The owners of the mall urged the court to vary the August 28 order so as to allow them to evict Nakumatt and cushion themselves from further losses.
“The damage to us can’t be redeemed by the fact that Nakumatt is already facing a petition for being unable to pay its debt. It means that we will have to underwrite all the losses from October 1,” said Junction Ltd’s lawyer.
