SINGAPORE - Mary Chia Holdings said on Wednesday (Aug 24) that a former partner, Slim Beauty House Co, began arbitration proceedings against it on Aug 19 and is claiming S$4.81 million, excluding interest and cost, for alleged breaches of their joint venture agreement.
The two companies announced a JV in April last year to set up a beauty and slimming service centre and provide and distribute wellness-related services and consultations in Singapore.
But in May this year, Slim Beauty House notified Mary Chia that it was terminating the JV, and that it planned to commence arbitration against Mary Chia for S$5.4 million over alleged breaches of their agreement.
Mary Chia said in the stock exchange filing on Wednesday that the purported termination of the joint venture was not justified and the claim against it has no merit.
The financial impact, if any, of the purported JV termination and of the purported claim for alleged breaches of contract cannot yet be determined, said the company.
It has appointed a legal adviser to act in the arbitration proceedings and said the group continues to operate their businesses as usual.