The Southern Sydney Retailers’ Association (SSRA) has taken up the cause of Eco Café owner Malcolm Ky, whose business in Mittagong Shopping Village folded after the Woolworths supermarket closed.
SSRA president Craig Kelly has
called on Woolworths, as the owner
of Mittagong Shopping Village, to compensate Mr Ky for the loss of business after Woolworths supermarket closed to make way for a Dan Murphy’s liquor store.
As a condition of consent for the Highlands Marketplace, Wingecarribee Shire Council had required Woolworths to keep the town centre supermarket open until its lease expired in 2010.
But after Woolworths bought the centre in May this year, the company argued the condition was no longer valid, as it could not have a lease with itself.
Faced with the loss of passing trade and already struggling to compete with Highlands Marketplace, Mr Ky closed his business on the same day as the supermarket.
Mr Kelly said the association was considering legal action under the NSW Retail Leases Act.
"The Act says basically, if a landlord does something which causes significant disadvantage or has significant adverse effect on trading on a tenant, the tenant is liable to compensation," he said.
Mr Kelly said the decision to close Woolworths supermarket had a significant effect on the Eco Café and this was unlikely to change when the Dan Murphy’s Liquor Barn opened.
"The Dan Murphy’s will attract a different clientele from the Woolworths supermarket," he said.
"Someone who is going to buy their liquor for the week or is dropping in to buy a bottle of wine to take to a party is not going to stop by the café and have a cup of coffee."
Full story: SHN, Wednesday, October 24