The Portfolio Committee
Economic Development
2010/11/24
PRESENTATION
Fig: 1   Monthly Turnover Sales figures for Steers Philani Valley (Umlazi)   25th July 2008 – March 2010 vs anticipated projections of R350 000 per month.
2008		
July   	35 785.16	
August  	54 680.90	
September 	48 769.43	
October 	51 042.18	
November 	58 038.00	
December	80 399.00	
		
2009		
January	48 050.34	
February	43 572.50	
March	47 971.35	
April	47 782.82	
May	48 552.63	
June	38 255.78	
July	48 295.46	
August	51 113.06	
September	50 675.90	
October	51 914.16	
November	56 406.21	
December	63 024.52	
		
2010		
January	40 661.95	
February	37 877.81	
March	40 228.94	

The Problem
•	Lease agreement was signed on the 12th May 2008, and the area was still under development (off-plan)
•	Lease was negotiated by the Franchisor (Steers) on my behalf
•	The center was declared fully functional by the 25th July 2008
•	My positioning was chosen on the basis that in front of the store will be a rank that will cater for 40 taxis, opposite tenants will be a Standard bank, Absa and a Totterhall.   On the opening none of those things materialized even still today.
•	The centre was a dead centre even today it is still half empty and it is not attracting enough customers to support the sustainability of tenants.   Anchor Tenant is Spar which I think the owner can also tell what he is faced with.
•	The projections that were based on R350 000 per month, based on the size of the store 181 sqm
•	The business was ±R1800 000, and I injected R530 000 as working capital in my business from my pension.
•	Closed down on 30th March 2010.
•	I paid R66 000 deposit to Old Mutual and first month rental
My attempts to engage the landlord:  Old Mutual managing agents
I asked for rental reduction or to make 10% of what has been made for the day:  Not accepted
Relocation was turned down, as I was asked to pay all outstanding rentals before relocating to another centre they are managing 
I was fined for not having a restaurant trading license because landlord refused to sign a consent to agree that I am the tenant, as I am owing rent he cannot sign.
My attempts with IDC
IDC has never been able to take part into making sure that they help in whatever way to make sure that I get helped.   
My attempts with the Franchisor
They are not cooperative at all, I must sort out my problem, I have reported and communicated with the top management of Steers up to no solution.
Request for Financial Assistance and interventions:
Department of Economic Development in KZN
SEDA eThekwini (appointed legal facilitator)
Business Support eThekwini Municipality 
Business Partners, FNB and Absa Bank no help
Approached BBSDP (DTI) can only assist businesses that are operational
Durban Chamber of Commerce
IDC
The current situation:
•	Old Mutual maintained the position that they will only release me from the lease only if I relocate to Mega City and on condition that I pay R250 000, cash and negotiate the balance
•	I have been trying to source this money  from different institutions up to no success
•	My life, future is on hold as I don’t know what will happen next
•	Old Mutual has started to flood me with legal calls for the rentals
•	IDC still keeping the equipment on storage but also requires me to agree on repayment amount   
•	The space is still available at Mega City but cannot get financial help
DEBTS:
Old Mutual				  R  460 000,00
IDC  					  R1300 000,00
Famous Brands Development       	       R94 000,00

My request:
I am seeking help in terms of getting out of this debt even if it means starting all over again in life while I have lost all my pension money, currently I cannot move forward with this cloud hanging over my head as it comes out in anything that I am doing and it puts a stop in my progress.
I am still maintaining that even if I was having R1 000 000,00 as capital, this situation was not suitable for any business survival, it’s beyond any business person’s control.