KUALA LUMPUR: TF Value-Mart Sdn Bhd today said it has taken legal action against GCH Retail (Malaysia) Sdn Bhd, the owner and operator of the Giant brand hypermarket, to vacate Giant Batu Caves premises.
TF Value-Mart is alleging business losses and non-compliance with a court order to vacate the 180,000 square feet premises.
TF Value-Mart operates 47 hypermarkets, with 3,500 employees in mostly two-tier cities.
TF Value-Mart in a statement dated May 2, 2024 said in 2023, it secured a tenancy agreement with the landlord, Crystal Promenade Sdn Bhd, to take over the premises of Giant Batu Caves, once GCH Retail's lease ended on Jan 31, 2024.
"Despite the expiration of the lease agreement, GCH Retail failed to vacate the premises by the specified date and subsequently filed a suit against Crystal Promenade for alleged breach of contract and disruption of its operations."Crystal Promenade, in a counterclaim, obtained a summary judgement in its favour, affirming the expiration date of the previous tenancy agreement and the absence of any option for GCH Retail to extend the lease beyond Jan 31, 2024," the statement said.
TF Value-Mart said according to the judgement, GCH Retail is required to hand over the premises to the landlord as per the terms of the original tenancy agreement.
Despite this, GCH Retail still occupies the premises, prompting TF Value-Mart to take legal action to safeguard its business interests.
TF Value-Mart said from 2016 to 2021, it has successfully taken over nine hypermarket stores from GCH Retail when its then owner DFI Retail Group decided not to renew its leases.
In 2023, DFI Retail Group sold GCH Retail to Macrovalue Sdn Bhd.