[Alpha Biz= Reporter Kim Jisun] F&F Faces 370 Billion won Lawsuit in the UK from Partner Company
F&F, a prominent fashion and apparel company, has been sued for ₩370 billion in the UK by its partner, MOVIN SARL, which produces and sells clothing under the SERGIO TACCHINI license, a premium sports brand managed by F&F. The lawsuit targets F&F and eight of its subsidiaries, including SERGIO TACCHINI Operations (STO) and SERGIO TACCHINI Europe (STE).
F&F disclosed on the 18th that the lawsuit stems from MOVIN SARL's failure to adhere to guidelines and quality procedures, resulting in the denial of license holograms for some of the Fall/Winter season products this year. This denial has hindered the sale of these products, and MOVIN SARL fears the termination of the license agreement if they attempt to sell the unapproved items, prompting the lawsuit.
Regarding the ₩370 billion claim, F&F explained that MOVIN SARL is demanding the equivalent of 40 years of its annual operating profit, suggesting the amount is exaggerated for the damages incurred from one season's product approval denial.
F&F pointed out that the UK's legal system allows for inflated claims due to the disproportionate relationship between litigation costs and claim amounts. The company stated that it will vigorously counter the claims in court through STO.
Additionally, F&F is considering filing a countersuit either directly or through STO, citing the damage to F&F and the SERGIO TACCHINI brand's reputation caused by the lawsuit.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
