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Village SPAR closes doors as remaining tenants request Mbombela community’s support

With the electricity cut to the Village Shopping Centre in Mbombela, the KWIKSPAR and TOPS @ SPAR have had to close their doors. However, some shops still remain in business and have asked the community to keep supporting them.

With the power to the Village Shopping Centre cut for over eight weeks now, KWIKSPAR and TOPS @ SPAR unfortunately had to close their doors to the public.

The electricity issues stem from the centre owner, the Nova Property Group, owing R3.1m in electricity, rates and taxes to the City of Mbombela (CoM).

Wilma Mahne, divisional managing director of SPAR Lowveld, responded on behalf on the retailer, saying that after extensive efforts to resolve the ongoing electricity supply issues at the centre, the closure is mainly strategic.

READ MORE HERE: Mbombela shopping centre tenants ask for support amid electricity cut

“This decision has not been taken lightly, and we are saddened by the impact this will have on our staff, valued customers and the Mbombela community at large.

“The landlord responsible for the premises is currently in arrears with the City of Mbombela for rates, taxes and electricity bills. The Village KWIKSPAR and TOPS @ SPAR on the premises, owned by the SPAR Lowveld Distribution Centre, have been running on generators since September 15. This has proven costly and, along with the decreased foot traffic to the shopping centre, the financial losses are unsustainable.

“Our primary focus is on the well-being of our dedicated employees. We are committed to ensuring that all affected employees are treated fairly and receive the necessary assistance to navigate through this challenging time, in line with the South African labour laws.

“We will continue to uphold our values and maintain our unwavering dedication to serving the community. We appreciate the support and understanding received from our loyal Village KWIKSPAR and TOPS @ SPAR customers to date.”

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According to Marisca Müller of the Local Choice Pharmacy at Village, the remaining tenants at the centre include the pharmacy, the Blind Guys Lowveld, the SA Italian Barber, Keller Williams Lowveld and the Laundrohub.

Müller said although the other tenants had to temporarily close their businesses, these were still operating, and they need the community’s support now more than ever.

“We are still up and running. We are not closed,” she said.

Meanwhile, the tenants at Courtside Centre had not had power since September 19, however, the electricity there has since been switched back on. This is due to a reported agreement between SPAR Lowveld and the CoM.

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Nova also owes the CoM over R3m in electricity, rates and taxes for Courtside, bringing the total amount to over R6m for both centres. Nova Property Group owns both the properties via their subsidiary companies, the Village Mall Investments and Tarentaal Centre Investments.

On September 26, Moneyweb reported that the Mbombela sheriff’s office had attached both Courtside and Village following a judgment against Nova. The sheriff’s office has confirmed this attachment.

Moneyweb also reported that the properties would reportedly have gone on auction, but Nova’s application for leave to appeal has brought the process to a standstill.

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