Meidong Department Store in Guangzhou’s Yuexiu District removed the stock of dealers based on the first floor of the store without warning after a contract dispute on August 8, according to Yangcheng Evening News. The feud is yet to be resolved.
The department store, which is located on Nonglinxia Road, has been in business for 1 year and 2 months. Ahead of an expected change of ownership, the department store asked all dealers on the first floor to move out as it plans to start selling different brands.
However, the dealers refused because their leases had not come to an end. Many of the dealers ran jewelry stores.
Meidong Department Store then removed all of the dealers’ stock without permission. About 1.3 million yuan worth of goods were removed. As well as jewelry, this included lamps, cameras and television sets. Meidong Department Store promised it would settle the accounts but said nothing about compensation.
One of the dealers, surnamed Han, showed a contract that he had signed with Meidong Department Store to a reporter. Han pointed out that the term of the lease is from April 1, 2012 to April 2, 2013. The dealers are still waiting for a statement from the department store.