Iconic sues Jovian Apparel for allegedly not paying RM4.96mil of masks ordered

KUALA LUMPUR: Iconic Worldwide Bhd's subsidiary Iconic Medicare Sdn Bhd (IMED) is suing Jovian Apparel Sdn Bhd for an alleged unpaid amount of RM4.96 million for face masks supplied to the retailer.

In a filing to Bursa Malaysia, Iconic Worldwide said IMED had filed a writ of summons and statement of claim against Jovian Apparel on May 13, at the Penang High Court.

It noted that IMED is currently a major contributor to the financial performance of the group. 

According to Iconic Worldwide, IMED had supplied customised face masks to Jovian Apparel based on the retailer's specifications and orders under the Jovian RTW brand. 

However, IMED alleged that Jovian Apparel had failed to make full payment for the delivered stock, leaving an outstanding sum of RM3.16 million, including warehouse charges and interest. 

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

The value of these neglected face masks amounted to RM1.80 million as of April 19.

"Despite various attempts from the plaintiff (IMED) in demanding the outstanding debts, the defendant (Jovian Apparel) still refuses or neglects to make payment to the plaintiff.

"Due to the failure, neglected and/or refusal by the defendant to pay the total debt to the plaintiff, the defendant had breached the terms of the agreement/contract between both parties," it said in a statement  of claim filed with the court.

Iconic Worldwide believes that, aside from professional fees, the company will not face any other liabilities from the writ of summons and statement of claim.

While the actual amount of the litigation will be determined by the court, the company believes that the impairment of the outstanding debt involved in this suit 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 as and when there are material developments in respect of the aforesaid proceedings," it noted. 

Previously, Jovian Apparel had announced that it would close its operations in the next two weeks after being in business for 17 years.

Its founder Datuk Jovian Mandagie made the announcement through a video on Instagram, stating that he was ready for a change and wanted to explore new passion. 

Founded in 2007 by Jovian, Jovian Apparel has an array of clothing, accessories, modest fashion and lifestyle goods, with several retail outlets in the Klang Valley.

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