Isetan axes tenancy with Japan Food Town after non-payment issues

ISETAN (Singapore) on Friday issued a notice to quit to Japan Food Town Development for non-payment of certain sums under the tenancy agreement for its lease on the fourth floor of Isetan in Wisma Atria.

As a result, Isetan has immediately terminated the tenancy, and on Feb 29, Isetan will exercise its right of re-entry to the premises, it said in a filing to the Singapore Exchange on Friday.

"(Isetan) is currently taking legal advice on the termination and will, in consultation with its legal advisers, consider the necessary steps to be taken to protect its interests," it added.

The financial impact of the termination on the company's results for FY2019 will be included within the full-year financial statement for the year ended Dec 31, 2019. The termination is also expected to have a negative impact on the current financial year's earnings of the company.

Isetan shares closed 10 cents higher at S$4.63 on Friday before the announcement.