Once a popular shopping destination in the capital, Karnaphuli Garden City has remained closed since October 1 amid a business downturn, declining customer numbers and mounting unpaid bills.
During a visit on Monday, the shopping complex's main entrance was found shut, with a banner announcing: “The shopping complex will remain closed from October 1, 2026.”
According to those concerned, the 20-storey building was established by Karnaphuli Group at the Shantinagar-Kakrail intersection in 1998. The shopping mall occupied the ground floor through the 3rd floor, while the 4th floor housed a food court and garden.
The complex initially had 198 shops. However, by the time it closed, only 17 shops inside the complex and 25 in total, including those outside, remained open.
Why did it close?
Bakibillah Osmani, general secretary of the owners’ association, told Dhaka Tribune that the closure resulted from a decade of mismanagement, the country's economic downturn and a lack of business.
He said: “This did not happen in a single day. Whether you call it a decade of mismanagement, the country's economic downturn or a lack of business, all these factors have contributed to this situation over the past decade.”
He said the difficult period began around 2016–17, when the Shantinagar flyover was constructed. Some shop owners who also owned the businesses operating there moved to other markets, expecting to return if the complex reopened or road conditions improved.
According to him, road closures during flyover construction reduced customer numbers. Established businesses moved to other markets and did not return. The Covid-19 pandemic further worsened the situation.
He said: “When the market reopened, the traders did not return. They had settled in other markets. Then the pandemic, Covid, came. During that period, some traders closed their shops permanently. Gradually, the shops began to close. On the day we closed the market, only 17 shops inside were open. Including those outside, the total was 25.”
Monthly expenses of Tk15 lakh against income of Tk1.5 lakh
Describing the complex's financial situation, Bakibillah Osmani said monthly expenses, including electricity bills and staff salaries, exceeded Tk15 lakh.
He said: “We were receiving a maximum of Tk1 lakh to Tk1.5 lakh in service charges.”
The complex's outstanding electricity bills have reportedly exceeded Tk50 lakh.
He had previously said: “Service charges were not coming in, and the outstanding electricity bill had reached around Tk50 lakh. As a result, all the owners jointly decided to close the market.”
He also said the complex had been operating for more than 6 months using money borrowed from market committee officials and some of the owners.