A Chinese firm linked to the operators of OldTown White Coffee has come under investigation in China over alleged contract fraud, forcing the popular coffee chain to shut down all its stores in mainland China.
Shenzhen Kopitiam Asia Pacific Ltd (SZKAP) is currently under investigation by the Chinese Public Security Bureau.
Jiangsu G&L Food & Beverage Management Co Ltd, which was granted licence by SZKAP to operate the franchise in the Jiangsu province in the mainland, said it was shocked when it found itself the subject of a complaint filed by Ai Chang Investment Ltd in April last year.
“In view of that, we have been forced to close all of our OldTown White Coffee outlets and this has caused tremendous damage to our company,” G&L said in a statement.
It said SZKAP also granted rights to Xiamen Kuaike Investment Management Co Ltd, another Chinese company in Fujian, in March 2017.
“To date, all OldTown White Coffee outlets in mainland China have been shut down,” it added.
The OldTown franchise operates about 200 cafe outlets throughout Asia.
The company is also involved in the production, marketing and sale of coffee and other beverages, including instant coffee mix, instant milk tea mix, instant chocolate mix and roasted coffee powder.
Source : FMT