China : Brums in legal spat

BRUMS, ranking fourth in the global children clothing brands, has kept aloof its over 60 franchise shops in China. However, two new BRUMS franchise shops furtively opened in Beijing city again.

Ningbo BRUMS Co Ltd, its Chinese partner recently announced that they had sued BRUMS and the involved Chinese companies in a Beijing law-court bringing up a claim against BRUMS worth RMB2.2 million.

Back in 2003, BRUMS had authorized a Hongkong company to search for an appropriate partner in China, fortunately in February 2003, Ningbo BRUMS Co Ltd became the only eligible company to have BRUMS trade mark in China mainland with authorization tenure being 5 years.
Sources said Ningbo BRUMS Co Ltd spent lots of money to buy the chaos belonging BRUMS in China.

In 2005, BRUMS sought Ningbo's help to involve as trading BRUMS brand children clothing had revived in China, but the latter declined their request. Again in 2006, sought partnership with BRUMS but Ningbo BRUMS Co Ltd did not oblige. This Brums, after being refused unilaterally stopped supplying the clothing samples to Ningbo BRUMS Co Ltd.

Now, both the companies are involved in the legal spat with the Chinese entity seeking recovery of financial losses incurred by it through the deal. 
 
Fibre2Fashion News Desk - China