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Tuesday, March 26, 2024

KK Mart sues socks supplier for at least RM38m over brand damage, aborted listing on stock market




KK Mart sues socks supplier for at least RM38m over brand damage, aborted listing on stock market




In the civil lawsuit filed against the socks’ supplier Xin Jian Chang Sdn Bhd and its director Soh Chin Huat, KK Supermart sought a court declaration that the supplier had unlawfully interfered with its business, and for court orders for Xin Jian Chang and its director to indemnify it for the losses and to prevent further causing of losses by unlawful interference to business. — Picture by Hari Anggara

Monday, 25 Mar 2024 9:50 PM MYT



KUALA LUMPUR, March 25 — Convenience store chain KK Supermart & Superstore Sdn Bhd today filed a lawsuit against the local company which supplied it socks — including the socks which attracted controversy over its “Allah” wording.

When contacted, KK Supermart’s lawyer Datuk David Gurupatham confirmed to Malay Mail that his client had filed the civil lawsuit at the High Court in Shah Alam today.


In the civil lawsuit filed against the socks’ supplier Xin Jian Chang Sdn Bhd and its director Soh Chin Huat, KK Supermart sought a court declaration that the supplier had unlawfully interfered with its business, and for court orders for Xin Jian Chang and its director to indemnify it for the losses and to prevent further causing of losses by unlawful interference to business.

In the same lawsuit, KK Supermart also wanted the court to assess the actual loss for its loss of profits from its average business income of RM1.5 million a week.


KK Supermart is also claiming RM10.5 million for the damage caused to its brand name and goodwill in the market, and RM20.3 million caused by the aborted proposed listing on the stock exchange — or initial public offering (IPO) — of its business, as well as aggravated damages to be assessed by the court, and punitive and exemplary damages.


In a statement of claim filed in court as part of its lawsuit, KK Supermart said Xin Jian Chang had applied on February 5 to supply arm covers, and that the retail chain had agreed to allow the arm covers to be sold on consignment basis.

KK Supermart said Xin Jian Chang had given a written description of the arm covers along with its barcode, but said it had never given permission for this consignment with this barcode to be used for the display or sale of socks carrying the word "Allah" and claimed that Xin Jian Chang had put such socks without KK Supermart's knowledge at its Bandar Sunway branch.

KK Supermart claimed Xin Jian Chang had placed those socks on that branch's racks on February 5, and said the outlet only had one employee working on that day and that this staff was at the cashier counter and that KK Supermart could not have reasonably supervised the socks' placement or inspect the goods under such circumstances.

KK Supermart claimed Xin Jian Chang had acted negligently or recklessly and in breach of contract, and that these actions had allegedly caused losses to KK Supermart.

Today, the Attorney General's Chambers issued a statement, saying that it will prosecute KK Supermart and its directors tomorrow at the Sessions Court in Shah Alam over the alleged deliberate intent to wound the religious feelings of Muslims by displaying socks bearing the word "Allah" on display racks for sale, and that Xin Jian Chang and its directors would also be prosecuted over alleged abetment as the supplier of those socks to KK Supermart.

Previously on March 19, Xin Jian Chang apologised for any offence or distress caused by the regrettable incident of socks bearing the word “Allah”, saying it had never intentionally ordered any socks with such words and that it had consistently advised its Chinese suppliers to avoid providing products bearing words, symbols, or illustrations that could offend the Muslim community.

Xin Jian Chang had on March 19 also said its China-based supplier Mu Mian Qing Hosiery Co Ltd had admitted that the five pairs of “problematic socks” were mistakenly included in an 18,800-pair order, and that it is currently seeking legal advice for possible legal action against the China-based supplier over the latter’s negligence in fulfilling the order requirements.


3 comments:

  1. Right from the start certain Chinese in Malaysia and China has been harbouring this evil intention of causing grave hurt to the world Islamic ummah. These people are simply evil and can be found among members of the evangelical Christian community party. Let's hope that this action taken at suing the suppliers is not another Wayang Cina.

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  2. If the natives have balls , boycott products from China
    Common on , show your jaguh kampungness

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  3. Mfer, show yr mfering proofs for

    "certain Chinese in Malaysia and China has been harbouring this evil intention of causing grave hurt to the world Islamic ummah"

    Farts r easy for mimic wannabe like u - die die want to pre-claim yr melayu status , even though it's a palsu one!

    Ooop… on certain part of the world trueful melayu ain't muslim! So for yr Islamic ummah, it can ONLY applies in bolihland for mfer like u due to the pommie defined race constitutional clause!

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