Tealive to apply for stay of execution after injunction threatens to close 161 outlets
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Tealive owner Loob Holding Sdn Bhd will file an application for a stay and for leave to appeal to the Federal Court after the Court of Appeal granted an injunction by Chatime franchisor La Kaffa International Co Ltd against Tealive from continuing its operations.
La Kaffa had filed the appeal after the High Court dismissed its injunction bid in May 2017 against former franchise holder Loob from carrying a similar business as Chatime.
“This matter is being handled by our lawyers and we will let the due process of law take its course. 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,” Loob said in a statement today.
Loob is now at risk of closing 161 of its Tealive outlets, which will affect 800 staff, if the injunction stays.
Tealive was created following a dispute between Loob and La Kaffa last year that saw the Taiwanese franchisor terminate its Chatime master franchisee contract with Loob.
Loob has since expanded Tealive overseas, including in China, Australia, India and Vietnam.
Questions & Answers
Q.What legal action is Tealive's owner taking following the injunction?
What legal action is Tealive's owner taking following the injunction?
Tealive owner Loob Holding Sdn Bhd will apply for a stay of execution and seek leave to appeal to the Federal Court. This aims to maintain their operations until the full legal process concludes.
Q.What is the potential impact on Tealive's business if the injunction is upheld?
What is the potential impact on Tealive's business if the injunction is upheld?
If the injunction stands, Tealive faces the closure of 161 outlets. This would directly affect the employment of approximately 800 staff members working for the company.
Q.Why did La Kaffa originally pursue an injunction against Tealive?
Why did La Kaffa originally pursue an injunction against Tealive?
La Kaffa sought an injunction because they believed Tealive, owned by former Chatime franchisee Loob, was operating a business similar to Chatime. They filed the appeal after their initial injunction bid was dismissed by the High Court in May 2017.
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