HKTVmall tech arm Shoalter has reportedly sued Hong Kong-headquartered fashion brand I.T's subsidiary online marketplace EESE, which wound up its business in July this year, for HK$49 million.
According to Ming Pao, Shoalter Technology has filed a petition to the High Court on 23 November stating that EESE had not paid after using its technology and configuration to set up a platform, so it requested HK$49m in arrears and interest from EESE.
The petition stated that the plaintiff Shoalter and the defendant EESE signed an agreement on 30 December 2020, where EESE hired Shoalter to provide support and configuration for its online shopping platform. From March to July 2022, Shoalter issued six invoices totaling HK$49m to EESE. However EESE did not make the payment.
A check by MARKETING-INTERACTIVE saw on EESE's website that the online marketplace has suspended its business operation from 12 July 2022, including EESE mobile apps and website.
Operated under I.T. Apparels, EESE aimed to offer premium lifestyle labels and experiences curated to bring joy to everyday life. It started the business in December 2021 and closed down within eight months. Over 1,000 merchants joined the platform and about 100,000 products were available, according to HK01.
MARKETING-INTERACTIVE has reached out to I.T for a statement.
EESE was not the only online platform that needed to shut its business. Previously in July, Alibaba planned to shut down its online retail platform Tmall Hong Kong on 31 October this year, according to Chinese business and finance publication Caixin. The last order date for consumers is 21 August and the last delivery date for merchants set for 26 August, said Caixin.
The Chinese eCommerce giant cited the purpose of “business strategy adjustments” behind the change, however it didn’t elaborate further, Caixin said. Alibaba will continue to provide payment and delivery services in Hong Kong via its customer-to-customer arm Taobao Marketplace.
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