Ron Sim’s LAC to keep Singapore stores open while appealing court ruling in GNC franchise dispute
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In 2022, LAC unilaterally terminated its franchise agreements with GNC Holdings and transformed all GNC stores in Singapore into LAC-branded outlets.
PHOTO: ST FILE
- LAC Global will continue operating its 63 Singapore stores as usual, despite court orders to hand over leases to GNC.
- LAC is appealing the court order, which largely upheld an arbitration award requiring them to transfer stores and pay damages to GNC.
- Disputes arose after GNC filed for bankruptcy in 2020, leading LAC to rebrand its stores and triggering arbitration and court rulings.
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SINGAPORE – LAC Global, which sells healthcare supplements, said it will continue operating its Singapore stores as usual despite court orders giving GNC rights to LAC’s retail leases.
The company, which has 63 outlets here, said it filed an appeal against the Singapore International Commercial Court’s (SICC) ruling on Oct 27.
LAC and its associated company ONI Global are part of V3 Group, a luxury lifestyle and wellness holding company belonging to Mr Ron Sim, founder of wellness technology brand Osim.
They were formerly franchisees of GNC, a US health and dietary supplements retailer.
In a ruling on Oct 21, SICC largely upheld an arbitration award that found LAC had wrongfully terminated its franchise agreements with GNC and gave GNC rights to LAC Global’s retail leases. The court also awarded more than US$18.9 million (S$24.5 million) in damages to GNC.
In response to queries from The Straits Times, an LAC spokesman said: “We acknowledge the court’s ruling and respect the judicial process.
“We have carefully reviewed the judgment and have filed an appeal to the Court of Appeal against that decision on Oct 27, 2025.”
The spokesman added that LAC remains committed to both its customers and team members.
“The ruling does not affect the day-to-day operations, and it will be business as usual for all our stores. All outlets in Singapore and across our regional markets will continue to operate as usual,” the spokesman said. He added that LAC does not “take lightly the trust that customers have in the integrity of our brand, products and membership programme”.
“Regardless of the outcome, customers can rest assured that we are not going anywhere, and we will continue to uphold the standards they have come to expect from LAC.”
LAC also reassured staff of its commitment to them and said it will keep them updated on the developments. It stressed that the ruling does not affect their roles.
LAC noted that the ruling states that “should GNC ask, then LAC is to hand over a list of former store locations and leasing agreements from when it was previously a franchisee of GNC”.
“Should GNC indicate interest in a location, any changes must be wholly at the consent of the respective landlord.”
In Singapore, Watsons is GNC’s current franchisee. In January, it was announced that GNC launched a store-within-a-store concept at Watsons’ flagship outlet at Ngee Ann City mall.
LAC saw its relationship with GNC break down around 2020 when GNC filed for bankruptcy protection.
Besides Singapore, the franchisee also operated GNC stores through its associated companies in other parts of Asia, such as the Philippines, Malaysia and Taiwan.
Some time in 2022, both companies began to have disputes about the conduct and termination of their franchise relationship. They arbitrated these matters before a tribunal in Pittsburgh, Pennsylvania.
According to court papers, senior executives at the franchisee believed that GNC wanted to remove them from the franchise.
As a result, the company began making its own commercial and legal decisions, including preparations to rebrand its 54 Singapore retail outlets with new names and logos to replace the GNC branding.
“Any such rebranding of the stores without good legal reason or the consent of the franchisor was a breach of the relevant agreements,” the papers said.
They added that this includes post-termination agreements that require the franchisee to assign all its outlets to GNC upon termination of the relationship.
According to findings, LAC believed that it would be released from its legal obligations, including the requirement to hand the stores back to GNC, due to GNC’s previous contract breaches.
The rebranding of all its Singapore stores occurred in May 2022.
After the rebranding, GNC started arbitration against LAC over alleged wrongful termination.
LAC also filed its own arbitration over keeping the stores.
The SICC panel upheld the core aspects of the arbitration award, which was the requirement to transfer stores and pay damages to GNC.
