Thursday, August 23, 2007, #161 (1428)

Sony Center offers delicate truce to Economic Development Ministry

By Ana Datiashvili


Sony's center no more

Sony Center representatives told the Ministry of Economic Development on August 21 they would like to buy a new storefront on Rustaveli Avenue, but still may contest their eviction from another building on the central Tbilisi street.

The store said they will pay USD 1 million to buy a 150-square-meter shop at 32 Rustaveli Avenue.

The Ministry of Economic Development forced the Sony electronics retailer, along with the adjacent Rustaveli Cafe, out of their Rustaveli Avenue location on August 7, reportedly to make way for a new development on the property.

"This is not their property any more. This is the state's property. We've talked about this with Sony and Rustaveli Cafe, and it's time to vacate this property," announced Minister of Economic Development Giorgi Arveladze at the time.

Company officials immediately protested the eviction, saying their lease legally extended for at least another decade.

Arveladze said his ministry would offer the store adjacent property at no cost, but company officials turned it down.

Irma Jalaghonia, press officer at the Ministry of Economic Development, told the Messenger that a year ago the ministry offered Sony Center the neighboring shop, which formerly housed the Saunje store.

"We haven't asked them for any additional money, even though Saunje's territory is bigger then Sony Center's old office," Jalaghonia said on August 22.

Representative for Sony in Georgia Ioseb Kokoladze said that the building the ministry booted them out of is still under dispute, as Mzia Kakabadze, who says she's the real owner of the property, is appealing the ministry's move in court. The building was illegally taken from her, Kakabadze claims.

The ministry, however, provided the Messenger with notarized documents dated November 23, 2006, in which Kakabadze apparently gives her Rustaveli Avenue holdings to the ministry as a "gift."

The business is in trouble now, the Sony representative said.

"Sony Center has taken a USD 3.3 million loss, and this will increase to USD 5.3 million. Six containers with goods arrived in Poti and we don't know where to keep all of our products," Kokoladze said.

The company hasn't decided exactly what it will do yet, he added. They're expecting a co-owner to come from America to petition for the company, and Kokoladze predicts the story will gain momentum.

"Maybe CNN, the Washington Post and other media will cover this incident. I know our shareholder will try his best to defend his property," Kokoladze said.

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