Bubble tea war continues with Loob denials


PETALING JAYA: Loob Holding Sdn Bhd, the former master franchisee of bubble tea chain Chatime in Malaysia, has strongly refuted all the allegations contained in a press statement issued by La Kaffa International Co Ltd of Taiwan recently.

Last Friday, the Taiwan franchisor of the popular Chatime terminated its agreement with Malaysian company Loob Holding, saying that Loob Holding “used raw materials that were not part of the approved recipe”.

The dispute between the Taiwan franchisor and the Malaysia franchisee is now being arbitrated in Singapore where Loob Holding has accepted the termination of their contract on Jan 19, which will be effective in 45 days.

“We vehemently deny all the false and malicious allegations set out in La Kaffa’s media statement issued on Feb 3.

“We continue to reserve our rights to take all action, and to explore all avenues, to protect our rights in this matter.

“This would include availing ourselves to all the remedies under the terms of our franchise agreement.

“We have no wish to engage in litigation through the media and are presently awaiting the legal process to take its course.

“Suffice for us to point out the following at this juncture,”said Loob Holding chief executive officer Bryan Loo in a press conference yesterday.

Loob Holdings pointed out that the company currently has 10 brands under its management and it has been accredited by five franchisors from four countries, including well-known international partners.

It has fully earned its reputation as a “master franchisee” for these brands in Malaysia and will continue to maintain this reputation.

For Chatime, Loob Holdings had made early substantial investments to secure an aggregate 30-year tenure ending in 2041, prior to the termination of the agreement.

“There are a lot of legal disputes running.

“To us it doesn’t matter as for us it will be resolved under a proper legal approach.

“For us, it is just to deliver business as usual, so that we can safeguard our over 1,000 young (staff), that is our priority.

“We will be ready to launch our new bubble tea brandname by early next month.

“It will be the same but better in terms of quality, customer service and innovation.

“We have plans to expand this new brandname in Asean as well,” he said.

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