Owners of Springs Mall are seeking more than R1 million for a breach of contract by Bathu.
Bathu founder and CEO, Theo Baloyi. Picture: Gallo Images/Oupa Bopape
A legal battle is unfolding between Spring Mall’s owners and Bathu Shoes, with the mall seeking a High Court order to evict the retailer and recover outstanding rental arrears.
Springs Mall is located at the Blue Crane Eco Park, owned by Blue Crane Eco Mall, Vukile Property Fund and F&G Investments 2, in Ekurhuleni, East of Gauteng.
Bathu was founded by businessman Theo Baloyi, and it is a subsidiary of Bathu Group.
Bathu faces possible eviction
Springs Mall General Manager, Stefan Prinsloo, confirmed to The Citizen that the owners of the mall and Bathu are in a legal battle over unpaid rent, but said the two parties were working to solve the matter amicably.
“We confirm that Bathu Swag (Pty) Ltd is indebted to the landlord in respect of outstanding rental and related charges,” said Prinsloo.
“The landlord has instituted legal proceedings against the tenant, including claims for the recovery of arrears of rent, cancellation of the lease agreement, and damages arising from the loss of rental income.
“The matter is currently sub judice. Notwithstanding the pending litigation, the landlord remains engaged with the tenant in an effort to achieve a commercial resolution of the dispute on mutually acceptable terms.”
Springs Mall asks Bathu for R1m
Court papers reportedly state that the owners of Springs Mall are seeking more than R1 million for a breach of contract by Bathu and its founder, Baloyi.
The Citizen has attempted to get a comment from Baloyi and Bathu since Wednesday without success. However, Baloyi has reportedly said he is unaware of the court application, as he believes Bathu has met all its rental obligations at the mall.
But a source close to the matter has confirmed to the publication that a court application has been filed against Bathu over outstanding rent.
If Bathu is going through a financial crisis, it would not be the first black-founded and owned brand to experience such. Drip, another beloved brand founded and owned by black businessman Lekau Sehoana, closed due to bankruptcy in 2024.
Monthly rent of R41k
According to court papers, Bathu and Baloyi are cited as the first and second respondents, respectively.
It is understood that Bathu and Springs Mall first entered into a lease agreement in early 2021. At the time, the mall was owned by a different company.
The first lease agreement between the two parties required Bathu to pay monthly rental of nearly R41 000, including municipal rates of more than R2 300, excluding water, electricity, sewer and refuse-removal charges.
Bathu agreed to pay a deposit of more than R173 000 and administration costs of R3 000, with the lease set to expire by the end of February 2024.
Consequences for defaulting
The lease agreement stated that if the retailer failed to meet its rental obligations, the landlords would be entitled to claim arrears, cancel the lease, and reclaim possession of the premises.
In May 2021, Bathu entered into another lease agreement for a storeroom measuring approximately 12.21 square metres at a monthly rental of R750, together with municipal rates of R248 and administration charges of R1 500.
It is understood that Bathu signed a renewal agreement extending its occupation of the shop for two years, from 1 March 2024 to 28 February 2026.
Under the renewed lease, the company agreed to pay more than R50 000 per month in rent for the shop, more than R900 per month for the storeroom, over R2 500 per month for marketing, and just under R3 000 per month in municipal rates. Bathu also agreed to pay a deposit exceeding R210 000 and administration costs of R1 500.
Baloyi signs suretyship
Baloyi is cited as the second plaintiff in the court papers because it is alleged he signed suretyship agreements on 15 February 2021 and 28 May 2024, binding himself as surety and co-principal debtor for Bathu’s obligations.
“The first defendant breached the terms of the lease agreement by failing to make payment as agreed on the monthly rental and charges and is presently in arrears in the amount/balance of R263 191.94,” read the court papers.
The entities claim that, despite demands for payment to Bathu and Baloyi, the arrears remain unpaid. They further allege that the breach has resulted in damages exceeding R1 million.
“This total amount of R1 091 443.18 represents the fair and reasonable value of damages suffered by the lessor as a result of the early termination of the lease agreement (as amended) having regard to both the applied probability of re-letting the relevant commercial leased premises in the current market trends during the un-expired period of the lease agreement (as amended), as well as the applied and relevant formula and rate of discounting,” read the papers.
