LOSS IN BUSINESS NOT ADDRESSED
Two tenants that CNA spoke to under condition of anonymity said that the compensation should take into account the drop in business, pointing to losses incurred since news of the lease termination broke.
Both are hoping to negotiate better settlement terms with Avista, but may resort to legal avenues as “the last step” if this fails.
One tenant described the loss in business as a “sharp and drastic drop”, as customers were reluctant to commit due to the uncertainty of continued service. Since September, sign-ups were “very rare”, the tenant said. He added that the losses were obvious when comparing the months of August and October.
Apart from compensation, the tenant hopes that Hao Mart can waive rents for the remaining tenancy to help them cope with operational losses. The tenant will be consolidating the data that Avista requested before responding to Hao Mart’s offer.
Another tenant similarly said Hao Mart’s proposal was not acceptable because it did not take into account the loss in revenue.
“We have customers that we need to give service for the future, they paid for it, … we’re offering service for the long term.
“Ever since they told us (we had to move out), it’s hard for us to actually make sales you know, because customers know it’s (going to be) closed. How can you promise somebody right now when in three months, you’re closed? Nobody would want to commit,” said the tenant, who asked for compensation in that aspect.
Without those funds, the business has no money to set up elsewhere, the tenant said.
“We are probably going to get back to (Avista) through our lawyers to request a certain type of settlement. We don’t want to go to court, but if that will be refused, we will probably go,” he added.
A third tenant said that he would likely accept the settlement if it included the cost of renovation.
CNA has contacted Hao Mart about the proposed settlement. Neither Hao Mart nor OG has addressed CNA’s questions in September about why the lease was terminated early.
