Prada and SECOO in Contractual Dispute: Arbitration Award Freezes SECOO’s Assets

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Beauty

Last Updated on 08/15/2022 by てんしょく飯

 

Earlier this year, Prada requested the Shanghai Jiading District People’s Court to freeze more than RMB 11 million (approximately ¥290 million) in assets of its longtime Chinese e-commerce partner SECOO due to contract disputes. Prada’s request was approved by the People’s Court of Jiading District, Shanghai on July 5, and assets related to SECOO were immediately frozen for one year.

 

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More than 1,000 complaints have been filed against SECOO in the past 30 days.

“Prada” and “Miu Miu ” under the Prada Group  will start direct sales at ” SECOO ” from June 2019. In addition to these brands, during the heyday of ” SECOO “, “STELLA McCARTNEY”, “RALPH LAUREN”, “ROGER VIVIER”, “VERSACE”, “TOD` S)”, “MICHAEL KORS”, and more than 3,800 domestic and foreign brands, and purchased more than 400,000 items. (TMALL)” was struggling to compete with major e-commerce companies.

 

SECOO posted a net loss of RMB 566 million (approximately 10.754 billion yen) for the fiscal year ended March 31, 2009. Sales fell to 3.13 billion yuan (59.47 billion yen), about half the level of the same period last year. As a result, Secor’s stock price has fallen to 27 cents (about ¥36) a share, compared to its highest price of $14.46 (about ¥1,900) a share (in 2006).

 

In addition, the Chinese online user complaint platform Black Cat has received more than 1,000 complaints against ” SECOO ” in 30 days. Many accused SECOO of not shipping products purchased by customers for no reason.

 

 

 

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