Loob takes Chatime Malaysia to court
PETALING JAYA: Tealive owner Loob Holding Sdn Bhd, which yesterday accorded the master franchise rights for India to World Iconic Brands Hospitality Pvt Ltd (WIB), has filed a legal suit against Chatime Malaysia Sdn Bhd for defamation.
Chatime Malaysia group managing director Aliza Ali told SunBiz: “We can confirm there is a legal suit for purported defamatory by Loob Holding against us, in relation to our letter of demand asking Loob Holding to take down two headlines from their official website that say ‘Chatime renamed to Tealive’ and ‘Tealive replaced Chatime’.
“It’s shocking that they have initiated this but we are prepared. We’ll leave it to the courts to decide,” she said.
Loob Holding CEO Bryan Loo claimed that Chatime Malaysia did not file a legal suit against the company, after Chatime Malaysia announced in March that it issued a legal letter to Loob Holding for the misrepresentation and defamation on Chatime implying that the brand had been replaced and renamed as Tealive.
“They (Chatime Malaysia) threatened to sue, but they did not. So we’re suing them for defamation. We’re just doing whatever to protect our brand image, interest and reputation,” he said after signing the master franchise agreement with WIB yesterday.
Chatime Malaysia, a subsidiary of Will Group Sdn Bhd, was named the new master franchisee for Chatime in Malaysia last year after Chatime franchisor La Kaffa International Co Ltd terminated the master franchise contract with Loob Holding because of a dispute. Loob Holding subsequently rebranded its outlets to Tealive.
Meanwhile, Loob announced that WIB plans to open 140 stores in India within a five-year period.
“India being a tea-loving country, we see a huge potential for our product,” Loo said.
WIB is owned by Franchise India, which claims to be Asia’s largest integrated franchise solutions company.
WIB founder and Franchise India chairman Gaurav Marya said Franchise India manages 400 brands and has 45 offices in India as well as six overseas offices.
Tealive India will open the first outlet by August this year and aims to roll out 15 outlets in its first year of operation.
Gaurav said it will invest US$2 million (RM7.9 million) in its first phase to open 10-15 stores. The Tealive outlets will be opened in New Delhi, Mumbai and Bangalore.
Gaurav said India lacks a concept like Tealive and with 940 shopping malls and 220 airports there, it is one of the largest travel retail opportunities in the world.
Besides its 175 outlets in Malaysia, Tealive has five stores in Vietnam. It is opening its first outlet in Melbourne, Australia, next month.