MUMBAI, June 1: Is Crawford Market upmarket or downmarket? It's a question that could well instigate a war of another kind. Viren Shah the owner of high-profile chain of fashion stores Roopam has sent a legal notice to Levi Strauss for breach of promise.Shah claims that Levi's backed out at the last minute from collaborating with him on his Crawford Market store because they did not think the area to be upmarket enough for their premium brand, 501s.
This was contradictory to their initial business negotiations. Shah claims that in December '97, Levi's showed keen interest in doing business with the Crawford Market outlet of Roopam, on certain terms and conditions. One of these demands was that the space allocated to them be refurbished to suit Levi's needs, to which Shah agreed.
Once a letter from Levi's confirming their intentions arrived, Shah began work on the store. "Their representatives also came over and checked out the showroom and only then gave us the final go-ahead. We agreed to every demandof theirs, including the fact that they made us furnish a bank guarantee, something we have never done in all the 30 years that Roopam has been in business. We also promised to provide signed cheques to the bank on the day the despatches begin," he says.
"But once nearly 70 per cent of the redesigning work was over, we received a letter from Levi's in March, saying they did not want to go on with the deal. The cinch was that they did not want to stock their premium product, the 501 jeans, with us, and that did not suit us," says Shah.
Levi's explanation was based on simple market logic: "After a lot of consideration and evaluating the retail environment in Crawford Market we have reached a conclusion that it will not be in the interest of the brand to have a presence in the current retailing scenario of Crawford Market and therefore we will not be able to be a part of the proposed section of Roopam".
The fine print was clear and left Shah enraged: "In effect what are they trying to saythat CrawfordMarket is not the kind of place where they can sell their goods? We run a premium goods store there, and we have never felt that way.
"Some of the richest people in the city live around this area and most topline stores have a presence here," says Shah.
To top it all, when Roopam demanded an explanation, Levi Strauss reverted with a crisp and dismissive statement: "Our senior management team has concluded that we would be unable to accept your application." And left it at that.
Shah who spent about Rs 20 lakh on the refurbishing a section of the store in compliance with Levi's specifications is not taking this lying down.In a legal notice delivered to Levi Strauss on March 28, Roopam has demanded that they honour their agreement, or Roopam will initiate action against Levis under Section 420, 406, r/w or 34 of IP code (for committing the offence of cheating and criminal breach of trust).
"Why should they get away with this kind of arrogant and high-handed behaviour? If they are a name, we are equallywell-known in the city, and we do not think too much of this kind of code of conduct. I am going to teach them a lesson," fumed Shah. Levi Strauss, on the other hand, state that they had "only sent a letter of intent, and not one of approval", to Roopam. And that these are "the normal preconditions for any potential retail partner".
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.