Ron Sim’s LAC to keep stores open while appealing GNC ruling

Singapore International Commercial Court gave GNC rights to LAC’s retail leases here

- Sue-Ann Tan

The rebranding of LAC'S Singapore stores occurred in May 2022. After the rebranding, GNC started arbitration against LAC over alleged wrongful termination of its franchise agreements. ST PHOTO: DESMOND WEE

(DESMOND WEE)

LAC Global, which sells healthcare supplements, said it will continue operating its stores as usual despite court orders giving GNC rights to LAC’s retail leases.

The company, which has 63 outlets here, said it filed an appeal against the Singapore International Commercial Court’s (SICC) ruling on Oct 27.

LAC and its associated company ONI Global are part of V3 Group, a luxury lifestyle and wellness holding company belonging to Mr Ron Sim, founder of wellness technology brand Osim.

They were formerly franchisees of GNC, a US health and dietary supplements retailer.

In a ruling on Oct 21, SICC largely upheld an arbitration award that found LAC had wrongfully terminated its franchise agreements with GNC and gave GNC rights to LAC Global's retail leases. The court also awarded more than US$18.9 million ($$24.5 million) in damages to GNC.

In response to queries from The Straits Times, an LAC spokesman said: “We acknowledge the court’s ruling and respect the judicial process.