Jacadi, the French childrenswear brand is reportedly planning to leave the UK market by the end of next month after a dispute with its franchisee. The closure will impact 57 people employed in its five stores in the country.
The UK stores are located in London and its suburbs, including the King’s Road in Chelsea, Battersea, Hampstead, Westfield London, and Richmond.
However, the reported move has invited litigation against the company from its UK partner French Children’s Wear (FCW) in the Lille Commercial Court. The FCW which has been its partner since 2012 has made an investment of £10 million in its UK stores so far.
Now it has sued Jacadi, one of the brands owned by the ID Group, for €30 million (£26.5 million) for reported “breach of contract”.
The contract between them got an extension of ten years in 2015 with an aim to expand its presence outside London.
A total of 273 stores including 5 in UK are being operated by the retailer across 38 countries. The news related to closure of UK stores also surfaced in last month.
The companies involved in the matter are yet to confirm the latest development.
