A lawyer for Miniso Guangzhou LLC says instead of heading to court, Miniso Guangzhou LLC and its Canadian franchisee have reached an interim agreement.
Lawyer John Grieve says in an email to The Canadian Press that the deal will keep stores operating and reinstitute the delivery of inventory to Canadian operations while both sides work towards a long-term solution.
Grieve’s remarks come after Miniso Guangzhou LLC filed court documents with the Supreme Court of British Columbia, threatening to force Miniso Investments Inc., Migu Investments Inc. and Miniso (Canada) Store Inc. into bankruptcy.
It also accused them of fraudulently transferring registered trademark rights to third-party corporations, disposing of inventory and ceasing to meet liabilities as they came due.
The filings said Miniso Guangzhou LLC is owed the Canadian equivalent of US$2.4 million in loans and US$13.3 million in inventory.
There are about 50 Miniso stores in operation in Canada, but when the brand entered the country in 2017 it promised to open 500 locations within three years.