Paris-based childrenswear brand Jacadi will be closing its five stores in the UK by the end of August, according to French news agency AFP, which says to have gotten the news from a source within the company. The closures are the result of a legal dispute with French Children’s Wear (FCW), with which Jacadi holds a franchising agreement.
Childrenswear brand Jacadi, one of the brands owned by the ID Group, signed a franchising deal with FCW in 2012 with the aim to enter the British market. FCW would be responsible for opening Jacadi stores across the UK. Although the contract has been extended for 10 more years in 2015, Jacadi has decided to stop the collaboration and close all UK stores by August 31, according to AFP’s source. A total of 57 employees work at those stores.
FCW, which has invested 10 million pounds in the stores, is now suing Jacadi for “breach of contract” at the Commercial Court of Lille, France, where ID Group’s headquarters are located.
Contacted by AFP, ID Group declined to comment. Jacadi currently operates 273 stores in 39 countries.
Source: Fashion United