August 26, 2016
1107
Negotiations to keep Knechtel Food Market open have failed, and the Lucknow grocery store is slated to close Sept. 1.
In a Facebook posting, Brian and Kathy Knechtel, who have operated the business for the past 30 years, said Bob Krupp, acting as president, secretary and treasurer of 686687 Ontario Ltd., the landlord, notified the Knechtels of the intention to seek a court order for the vacant possession of the grocery store premises and change the locks, effective Sept. 1.
The landlord has been owned by Krupp and Ken Zurbrigg of Kincardine and Brian Knechtel of Lucknow as equal shareholders since 1986.
The Knechtels said they have been unable to negotiate fair market rent for Knechtel Food Market for many years. Through a dispute resolution process, managed by Jacques Law of Kincardine, the Knechtels attempted to acquire outright ownership of the property by purchasing the shares of Krupp and Zurbrigg.
They negotiated in good faith with a valuation based on fair market rent, considering the economic climate in small-town rural Ontario and the grocery industry, as well as concerns regarding the unknown environmental quality of the property.
In mid-July, the majority shareholders refused the Knechtels' offer and issued a Notice of Default on Rent and a requirement to vacate the premises in less than 15 days, by July 27.
Current and retired members of the business community approached the landlord with the best intentions, to negotiate and acquire the property on behalf of the Knechtels, with a view to keeping a grocery store in Lucknow.
Unfortunately the landlord insisted on a price even higher than the final offer which was presented to the Knechtels during the dispute resolution, as well as payment for all legal costs to date, while ignoring the environmental concerns, said the Knechtels. "The majority shareholders have made it clear they are not open to further negotiation.
"While we appreciate the efforts taken on behalf of us, our staff and the community, these terms are not acceptable for us to continue to expend the time and effort that have been required to operate Knechtel Food Market over the past many years. Quality of life and our health are also important considerations."
The recent failed negotiations have put the Knechtels in a more vulnerable position, and unquestionably, have only served to place more grief and stress on them, their family, and the employees of Knechtel Food Market. They appreciate the public's support as efforts to vacate the premises resume, now with only six days to do so.
"We truly regret this outcome, not only for ourselves and our valued employees, but also Lucknow and the entire community," said the Knechtels. "We value your support of our efforts over the past 30 years."
Krupp said Friday that the Knechtels are 18 months in arrears on the rent for the grocery store business.
"We offered them several different scenarios," he said, "but they wanted it for nothing. We are still willing to look at other options."
He said the company partnership (referred to by the Knechtels as the landlord) has been in existence since 1986.
The company has seen fit to change the locks, effective Sept. 1, said Krupp, and will apply for an order to have the Knechtels remove their assets from the building.
"Unless Brian (Knechtel) pays the back rent, the doors close Sept. 1," he said.
For the final Knechtel Food Market flyer, click on the following link: www.save.ca/flyers/knechtel-food-market
Written ByLiz Dadson is the founder and editor of the Kincardine Record and has been in the news business since 1986.
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