Jovian Apparel Accused of Not Paying RM4.96 Million for Face Mask Order

Source: News Straits Times

Iconic Medicare Sdn Bhd (IMED), a subsidiary of Iconic Worldwide Bhd, has filed a lawsuit against Jovian Apparel Sdn Bhd, claiming that the retailer has yet to pay for face masks worth RM4.96 million.

In a statement to Bursa Malaysia, Iconic Worldwide revealed that IMED filed a writ of summons and statement of claim against Jovian Apparel on May 13 at the Penang High Court, as reported by the New Straits Times.

According to Iconic Worldwide, IMED supplied face masks to Jovian Apparel according to the retailer’s specifications and orders under the Jovian RTW brand.

However, IMED alleges that the company failed to make full payment for the delivered stock, leaving an outstanding balance of RM3.16 million, which includes warehouse charges and interest.

Additionally, Jovian Apparel placed orders for more face masks, which IMED prepared, but the retailer allegedly ignored or refused to provide a delivery schedule for these goods.

As of April 19, the value of the neglected face masks totaled RM1.80 million, according to the report.

“Despite numerous attempts by the plaintiff (IMED) to collect the outstanding debt, the defendant (Jovian Apparel) has refused or failed to make payments to the plaintiff.

“Due to the defendant’s failure, neglect, and/or refusal to pay the debt owed to the plaintiff, the defendant has breached the terms of the agreement/contract between both parties,” the statement of claim filed with the court read.

The report also mentioned that Iconic Worldwide believes, apart from professional fees, the company will not face any other liabilities from the writ of summons and statement of claim.

Although the actual amount of litigation will be determined by the court, the company believes that the impairment of outstanding debt involved in this lawsuit could significantly impact Iconic Worldwide’s future earnings and net assets for the financial year ending June 30, 2024.

“The company will continue to make further announcements should there be any material developments regarding the above proceedings,” it said.

Previously, Jovian announced the closure of operations for its two brands, Jovian Mandagie Couture and Jovian Ready-To-Wear.

At the same time, a closing sale was held with significantly reduced prices.