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

Dd Ft 1 Dd Ft 1
News5 hours ago

“Every child has the right to live” – JPN Pleads with M’sians Not to Abandon Newborns, Urges Legal Registration

There have been many cases in Malaysia of mothers abandoning their newborn babies, with many not realising the long-term consequences...

Collage 52 Collage 52
News5 hours ago

Subang Jaya Man Wears Fake PDRM Uniform in Viral Video, Gets Arrested & May Face Up to 1 Year in Jail

A local man has been arrested after a viral video surfaced showing an individual wearing a vest and helmet bearing...

Collage 51 Collage 51
News1 day ago

“First time in history” – MP Raises Taman Kepong Flood Crisis with Hannah Yeoh, Calls for Urgent Solutions

The continuous heavy downpour over the past few days has tested the resilience of infrastructure across the Klang Valley, as...

Collage 1 3 Collage 1 3
News2 days ago

Drunk Sarawak Man Assaults Wife While Their 2 Daughters Join In to Verbally Abuse Her, All 3 Arrested

A woman in Bintulu, Sarawak, was allegedly assaulted by her husband in a harrowing domestic incident. In a disturbing turn...

Dd Ft 2026 04 21T095904.546 Dd Ft 2026 04 21T095904.546
News2 days ago

Cop Seen Stepping on Man’s Head in Kedah, PDRM Says Suspect Resisted Arrest & Tested Positive for Drugs

A video has recently gone viral, with netizens raising concerns over the actions of a Royal Malaysia Police (PDRM) officer...

Dd Ft 2026 04 20T102132.144 Dd Ft 2026 04 20T102132.144
News3 days ago

24yo Pakistani Fugitive Recaptured: How He Evaded Authorities for 9 Days After Sungai Buloh Prison Escape

Previously, 24-year-old Muhammad Hassan, a Pakistani remand detainee facing charges of child sexual offences, robbery, and immigration violations, escaped from...

Collage 50 Collage 50
News6 days ago

Bus Dangerous Driving: Driver Jailed for 1 Year, Woman on His Lap Gets 6 Months & Both Fined RM5k Each

A former bus driver, who went viral after being caught with his girlfriend sitting on his lap while he was...

Collage 49 Collage 49
News6 days ago

Enraged at JPJ Seizing His Pickup for 8 Years of No Road Tax, Melaka Man Attempts to Torch Vehicle with Petrol

A dramatic enforcement incident unfolded in Melaka when a 29-year-old man reacted aggressively after being informed that his four-wheel drive...

Announcement

Latest Videos



TRENDING TODAY