Supplier Courtaulds has issued legal proceedings against womenswear concessions business Style Group Brands, formerly known as Jacques Vert Group, in Sri Lanka.
A hearing commenced in the Commercial High Court at the end of November, following an eight-year dispute over an alleged breach of contract.
Sources told Drapers the legal battle began after Courtauld’s took over one of Style Group Brands’ factories in Sri Lanka, which employs around 8,000 people, in 2008.
The supplier claims Style Group Brands failed to buy the agreed quantity of products from one of its companies, Bairdwear Interfashion – which had been part of the sale agreement.
Courtaulds is hoping to recover $13.5m (£10.5m).
Style Group Brands has denied Courtaulds’ allegations and set out a number of counterclaims, Sri Lankan newspapers have reported.
When contacted by Drapers, a spokesman for Style Group Brands said it would be inappropriate to comment while the case is ongoing.
The local reports said Courtaulds has denied the counterclaims, but the supplier also declined to comment at this time.
A ruling has yet to be made.
Jacques Vert Group changed its name to Style Group Brands earlier this year.
The UK arms of Courtaulds – CUK Clothing and Courtaulds Brands – fell into administration in May following the collapse of BHS.