After a fast expansion and promise to open 500 stores across the country, MINISO Canada was mixed up in intense allegations that had shoppers, landlords, and analysts concerned about the company’s future.
In December 2018, it was revealed that MINISO’s parent company, MINISO China, had filed an Application for Bankruptcy Order in the Supreme Court of British Columbia.
Within the application, there were allegations of misconduct, including many things that go against the terms of the Licensee Agreement, like the transfer of intellectual property rights, and the continued use of the MINISO trademark in Canada, which was allegedly terminated some time ago. The parent company also alleged that MINISO Canada had been “fraudulent in its business dealings by transferring and hiding assets.”
The court hearing was scheduled for January 7, but things have been settled.
Had MINISO China moved forward with its application, MINISO Canada could have joined the long list of retailers to pull out of Canada and close its doors for good.
We previously reported that MINISO Canada had responded to allegations. The company stated that the two parties had reached a “preliminary agreement” and were “in the process of finalizing the details.” After much anticipation, those details have finally been revealed.
Instead of taking the issue to the Supreme Court, MINISO China and MINISO Canada reached an interim agreement outside of the court.
In an email to The Canadian Press, lawyer John Grieve said that the Canadian stores will remain open and continue to operate. Shipments, which were previously on pause, have been reinstated to the Canadian branch and both sides are working on a long-term solution.
As of right now, there are around 50 MINISO stores in operation in Canada. And like we said, the brand plans to 500 stores across the country.
Now that the dust has settled (for now), the future looks bright for MINISO Canada again.
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