Mary Chia unit ordered to pay over $580k
A wholly owned subsidiary of Singapore-listed Mary Chia Holdings has been ordered to pay more than $580,000 in damages and costs over a joint venture gone sour.
The Singapore International Arbitration Centre (SIAC) also ordered that MSB Beauty, the joint venture formed by Mary Chia Beauty & Slimming Specialist and Japan's Slim Beauty House, be liquidated.
Mary Chia Holdings said in an exchange filing on Thursday that the unit was ordered to pay Slim Beauty House about $315,400 in damages for breaching the joint venture agreement and around $269,000 in costs.
It was also ordered to bear all relevant liquidation expenses.
The weight loss and beauty company, which may appeal the SIAC's decision last Friday, had previously said that it did not believe that Mary Chia Beauty & Slimming Specialist breached the joint venture agreement.
MSB Beauty was incorporated in Singapore in April 2015, with Mary Chia Beauty & Slimming Specialist holding 51 per cent of the issued share capital and Slim Beauty House the rest.
The joint venture was meant to focus on Singapore consumers. But Slim Beauty House initiated arbitration proceedings last August, claiming about $4.81 million over an alleged breach of agreement. -THE STRAITS TIMES