Loob Holding, owner of Tealive, has reached an out-of-court settlement with La Kaffa International, owner of Chatime, to "amicably resolve" all disputes which arose from their one-time franchise relationship of Chatime.
In a settlement agreement executed yesterday, both parties have agreed to withdraw all proceedings in Malaysian courts and arbitration in Singapore. "This settlement shall not constitute nor be deemed nor treated by any party as an admission of any allegation and/or liability," the joint press statement read. Both parties have also agreed that all the other terms shall remain private and confidential.
This comes after the Court of Appeal granted an injunction filed by La Kaffa International in early July, against its former franchise holder Loob Holding from running a similar business. This was based on “breach of post-franchise terms and the return of its properties” and Tealive was to cease operations.
Thereafter, the Federal Court granted Loob Holding’s application for a stay of the Court of Appeal order dated 27th June 2018. As such, all Tealive stores remained in business as usual. Following that, Tealive confirmed in a Facebook post that it “will maintain status quo pending further direction from the courts”, shutting down rumours of its closure. It also thanked its customers for their support and said it looks forward to continue serving them.
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