MPH.L Regulatory News (MPH)

23 Mar 2005 07:00

Marchpole Holdings PLC23 March 2005 23 March 2005 Marchpole Holdings plc ("the Company") Marchpole Update Marchpole Holdings plc, which designs, produces and sells high quality clothingand accessories for six world class brands (Yves Saint Laurent, Boateng,Jean-Charles de Castelbajac ("JCC") and Jean-Charles de Castelbajac / Rossignol,Emmanuel Ungaro and Ungaro. The Company is pleased to announce that its differences with Ozwald Boateng andhis company have been resolved by the current court proceedings and aninjunction has been granted preventing Bespoke Couture Limited from sellingsuits and other items through a discount outlet, established without referenceto the Company. The dispute involved a number of issues. In April 2004 Ozwald Boateng andBespoke Couture alleged breach of contract and threatened termination of itsdiffusion licence with the Company. The allegation was made in respect of theCompany withholding a compensation payment under an agreement first made inOctober 2002 that provided for the termination or conclusion of an O-Z designagreement with Debenhams and subsequent removal of O-Z stock, which the Companyalleged was to take place by 1 September 2003. This agreement was concludedseparately to the main licence contract. As stock did exist at this time theCompany withheld payments and sought an amicable conclusion. Under threat ofcourt proceedings Bespoke Couture withdrew its first threat to terminate andwhen a second threat was made this was successfully resisted with BespokeCouture having to withdraw its threat and costs were awarded to the Company.Following recent court proceedings it was found that the Company should make thecompensation payment from March 2004, the date that the O-Z product was finallyremoved from Debenhams, a position which the Company has always been prepared toconsider. During November 2004, the Company became aware of an Ozwald Boateng discountoutlet operating at Bicester Village. the Company contended that this was inbreach of the main licence agreement and this was confirmed by yesterday'sjudgment. The injunction granted, as Bespoke Couture has accepted, will meanthat Bespoke Couture will have to close this outlet. Costs were awarded reflecting success on the various issues with the detailedfinancial implications to be determined at a later date. Greg Tufnell, Chief Executive commented: "Throughout this process we have always sought to reassure our shareholders thatthese issues would not impact our main licence agreement nor our financialprojections. The judgment handed down is consistent with these reassurances andI now look forward to focusing on the successful platform Marchpole has builtfor the Boateng brand" For further information contact: Marchpole Greg Tufnell - Chief Executive 020 7908 7700Michael Morris - Executive Director Shore Capital Alex Borrelli 020 7408 4090 Buchanan Tim Thompson / Nicola Cronk 020 7466 5000 Notes to editors: In September this year, Marchpole announced strong interim results for the sixmonths ended 2 October 2004, with operating profit up 194% to £2.6 million(2003: £0.9m) on increased turnover of £15.7 million (2003 : £8.0 million). This information is provided by RNS The company news service from the London Stock Exchange