fbpx
Connect with us

News

Tealive Outlets Risk Shutting Down for Good After Getting Warning From Court

Published

Tealive Outlets At Risk Of Closing Down After Appeal Court Grants Chatime'S Injunction Order - World Of Buzz 1
Source: Chatime

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

Uh-oh, this doesn’t look good for Tealive! Bubble tea fans may not be able to drink the popular Tealive beverage anymore as the Court of Appeal has reportedly granted an injunction against Loob Holding Sdn Bhd on Wednesday (June 27).

According to FMT, Chatime owner Taiwan-based La Kaffa International Co Ltd had previously filed an injunction against the Malaysian bubble tea chain in February 2017 but the case was dismissed. The injunction was filed because La Kaffa wanted to stop Loob Holding from running a similar business as Chatime as they said that their tea business had been stolen from them.

However, La Kaffa brought the case to the Court of Appeal and in a written statement, Justice Hamid Sultan Abu Backer said that the Kuala Lumpur High Court had erred in dismissing the injunction against Loob Holding in May 2017.

Tealive's Operations May Be At Risk After Appeal Court Grants Chatime's Injunction Order - World Of Buzz 1

Source: fmt

The previous judge had ruled that the injunction be dismissed as it would affect the livelihood of 800 staff employed by Tealive and its 161 outlets. Hamid said this was not justifiable as Loob Holding had changed from the Chatime brand overnight to Tealive.

“Their conduct is not only in breach of legal obligations related to restraint of trade but also a breach of franchise law which does not encourage criminal or tortious conduct of business,” Hamid added.

“To put in simple terms, Loob having had the benefit of Chatime franchise business proceeded to set up a rivalry business which La Kaffa says is not permissible under the franchise terms as well as Franchise Act 1998. In consequence, they sought injunctions to restrain Loob with other mandatory prayers. The originating summons of La Kaffa, made pursuant to section 11 of Arbitration Act 2005 and/or inherent jurisdiction of the court sets out the problem as well as the restraining orders sought,” Hamid wrote.

Tealive Outlets At Risk Of Closing Down After Appeal Court Grants Chatime's Injunction Order - World Of Buzz

Source: the star

La Kaffa said that they started to doubt Loob Holding in January 2016 when they decreased orders for raw materials  despite growing rapidly in Malaysia. The Chatime drama came to a climax in December 2016 when La Kaffa decided to terminate the master franchise agreement. They also said that Loob Holding owed them US$713,273.72 (RM3.1 million) for raw materials which was later reduced to US$644,536.32 (RM2.6 million).

It is currently unclear whether Tealive is able to continue operations in Malaysia with the injunction granted. They told Vulcanpost that they will file an application for a stay and for leave to appeal to the Federal Court and their lawyers will be handling it. However, Loob Holding has already planned to expand to China with 500 Tealive stores in three years so it looks like they have other plans ahead!

Don’t worry though, there are many other bubble tea shops in Malaysia that can satisfy your cravings!

 

Also read: 7 Best Alternative Bubble Tea In KL Aside From Chatime You Can Try

7 Best Alternative Bubble Tea In Kl Aside From Chatime You Can Try - World Of Buzz 2

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Fake Kidnap To Skip Class Fake Kidnap To Skip Class
News14 hours ago

M’sian Teen in Sabah Caught Faking Her Own Kidnapping to Avoid Going to Class

We’ve all had that subject in school that we dreaded going to while still studying. However, this 13-year-old girl decided...

Collage Collage
News16 hours ago

PN Says They Will NOT Close Down Vernacular Schools, Dr Akmal Argues it’s PN’s Attempt to Get Votes

The debate about vernacular schools is still ongoing, but Perikatan Nasional recently clarified that, according to its member Wan Ahmad...

No Palm Oil Ice Cream Fine No Palm Oil Ice Cream Fine
News16 hours ago

Minister of Plantations: Fine of Up To RM250,000 For Traders Discriminating Palm Oil Products

Palm oil is one of our country’s products, and internationally, there have been many claims by different parties that it...

Collage 12 Collage 12
News1 day ago

“It’s against principles of Islamic justice” – Perak Mufti Tells M’sians to Stop Boycotting KK Mart

KK Mart is still facing the wrath of boycott movements following the Allah socks issue. Is it time we put...

My Post 1 2024 05 03T164055.030 My Post 1 2024 05 03T164055.030
News1 day ago

M’sians are Questioning How Microsoft’s RM10.5Bil Investment Will Bring 300k Job Opportunities

It was recently announced that Microsoft will invest RM10.5 billion to build cloud and AI infrastructures in Malaysia over the...

My Post 2 50 My Post 2 50
News1 day ago

Perak Market Fish Vendor Admits to Peeing at His Stall in Front of Customers, Says He’s Short Staffed

While wet markets have always been, well, wet and a little dirty, no one would expect there to be human...

Feat Image Media Feat Image Media
News1 day ago

M’sia Falls 34 Spots in World Press Freedom Index 2024 Due to Alleged Govt ‘Censorship’ of Criticism

Malaysia is no longer the highest-ranked Southeast Asian nation in the World Press Freedom Index 2024, the latest edition of...

Feat Image Hotline Jakim Feat Image Hotline Jakim
News2 days ago

JAKIM Sets Up 24-Hour Special Hotline for M’sians to Channel Complaints About Insults to Islam

The Department of Islamic Development Malaysia (JAKIM) has launched a special 24-hour hotline for the public to channel complaints regarding...

Announcement

Latest Videos



TRENDING TODAY