Danish Mall Closes After Massive Debt

Danish cloth

writer icon Wilma Johansson     ISB   |   Business     🕐 16. Dec. 2019

The Danish shopping centre ‘Bazar Fyn’ is closing due to a lack of rent payment.

On the morning of Saturday the 14th of December, all shop owners of Bazar Fyn were informed that the 31st of December 2019 will be the last day of trading for the shopping centre.

The shop owners were informed in a letter written and handed out by the real estate company Olav de Linde, reports the Danish newspaper TV2 Fyn.

Bazar Fyn
The buildings at Thriges Plads in Odense are owned by the real estate company Olav de Linde, while the shopping centre is run by the Bazar Fyn Aps and as such the Bazar Fyn Aps is obliged to pay the yearly rent of 3 million Danish Kroner, which amounts to 250 000 Danish Kroner per month.

The Letter
Olav de Linde declare in the letter that they have, over several years, "given large, extraordinary discounts on rent", and states that they do not know the reason why the mall is not in financial surplus, "as we purely are the landlords of the premises and do not deal with the operation of the mall."

The real estate company further state that they no longer have a belief that the mall will be able to regain and maintain a healthy economy. ”We no longer think it is possible, and we can no longer see any reason for further spending on the mall, which cannot maintain financial surplus despite a very low rent.”

Years Of Bad Economy
Bazar Fyn Aps has for the past couple of years been under economic pressure. Thus, the 2018 accounts showed that equity had reached minus DKK 525 000 after a pre-tax loss of DKK 280 000 in 2018, and a loss of DKK 655 000 in 2017.

In addition to this Bazar Fyn Aps owed Olav de Linde DKK 1.1 million in rent at the beginning of 2019.

The stores and entire mall are at this time scheduled to close on the very last day of the year, 31st of December. The owner of Bazar Fyn Aps, Mohammad Saad, told TV 2/Fyn that he does not know what the future holds for the mall.

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