Entrepreneur

Will Tealive Be Shutting Its Stores After Yesterday's Court Decision? Loob Holding Responds.

Just yesterday, Loob Holding—the holding company of popular Malaysian F&B franchise Tealive—was hit with the news that they would have to cease all operations across its 161 franchised and sub-franchised stores that employ about 800 people around Malaysia.

This came as a result of an injunction filed by Chatime owner La Kaffa International with the Malaysian Court of Appeal just recently.

Dictionary Time: An injunction is an official order given by a law court, usually to stop someone from doing something that threatens or invades the legal right of another. It can either get someone to do or refrain from a certain act. 

In a statement, Justice Hamid Sultan Abu Backer said that the court had made an erroneous call in dismissing a former injunction filed by La Kaffa. The former injunction was dismissed on the grounds that Tealive’s franchisees and employees would be negatively impacted had Tealive been forced to close down.

All this came in the wake of a legal fiasco that saw Loob Holding (then master franchisers of La Kaffa-owned Chatime) switch around their branding overnight to Tealive in 2016, with other problems including a breach of agreement relating to use of unapproved ingredients in their products.

In response to the injunction, Loob Holding issued an official statement to the public, saying that they would be handling the situation accordingly.

“Loob Holding has been informed that the appeal by La Kaffa has been allowed by the Court of Appeal yesterday. We will file an application for a stay and for leave to appeal to the Federal Court.”

“This matter is being handled by our lawyers and we will let the due process of law take its course,” it continued. “We have instructed them to make the necessary application to the courts to allow us to maintain status quo until final settlement of the entire legal process.”

The statement then concluded with, “Tealive is a home-grown brand that was born in Malaysia and raised for the world.”

The statement released by Loob Holding Sdn Bhd today.

Nothing more has been said by Loob Holding thus far, but we’ve also reached out to Loob Holding for comment and will update this piece accordingly.

Feature Image Credit: Tealive

 

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