Because of its dispute with a distributor, the world’s largest luxury group – LVMH in Hangzhou, the grip of a “good faith” storm.
As the accused of “unilateral breach of contract”, LVMH headquarters in China – Louis Vuitton Watch & Jewelery Hong Kong Limited (hereinafter referred to as “LVMH Hong Kong”) has recently been a special dealer, Hangzhou, Hangzhou Bao-Liang Tech Co., Ltd. (hereinafter referred to as “Bao-Liang Company “) to court to require the compensation which a loss of around 8 million yuan.
Hangzhou Intermediate People’s Court has formally accepted the case and the trial in January next year.
At present, Bao-Liang operates LVMH’s brands, “Hao Ya” the world’s largest store. Bao-Liang Ying Lian Ping, general manager yesterday, accept the “First Financial Daily” said in an interview, they run the other LVMH brands – Dior store, it is in China, “the only one not taking Direct, while the authorized to operate the shop to take. ”
Bao-Liang complaint the company said in April 2005, LVMH decided to adopt the company’s Hong Kong opened in Hangzhou, the world’s largest sheet TAG Heuer and Christian Dior brand image stores. November 11 the same year, the plaintiff according to agreement, the company set up shop – network g (Hangzhou) Co., Ltd., as a plaintiff, TAG Heuer and Christian Dior brand sales representatives.
“From the beginning in August 2006, the defendant stopped for no reason supply store to the plaintiff, the plaintiff to the defendant several times in different ways despite warnings by supply and demand an explanation,” but did not get satisfactory answers.
Ying Lian-ping said that in the October 24 this year, LVMH Hong Kong has sent a reply letter “accusing” Bao-Liang company does not operate stores valid license, licensed products sold in the shop by a third party has been a serious breach of the relevant agreements.
“Third Party” means network g (Hangzhou) Co., Ltd.. Ying Lian Ping believes that the company should be calling for the establishment of the Hong Kong store LVMH company, but Bao-Liang company’s business agent, and the company was founded with the LVMH business occurred in Hong Kong has been more than 10 months, the other party never raised any objection, “It raised the suspicion excuses for breach of contract.”
Ying Lian Ping speculated that the reason was fast, it may be because shop is the LVMH Hangzhou, Hong Kong’s only a “Christian Dior” authorized store, which previously, LVMH only “Christian Dior” direct sales stores, not authorized stores, “LVMH The new high-rise on the opening of ‘Christian’ license with the former shops have different views. ”
Bao-Liang’s complaint said, “November 13, 2006, the defendant despite the plaintiff’s repeated requests to inform the plaintiff cancel the agreement, the plaintiff raised an immediate objection, that the defendant was not entitled to termination, the notice should be invalid.”
November 28, Bao-Liang company to court and put forward the defendant for damages 8 million yuan, etc. 5 claim.
This, LVMH Jue Zheng, general manager of the Hongkong and Shanghai office, told this reporter that the case has entered a legal process; both sides are through the courts “to communicate.”
“We are a multinational with a range of norms and ethics in China will not go beyond the framework of the law.” Zheng Jue said.
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