SurfStitch dispute with former CEO continues
SurfStitch has ended its contractual relationship with information technology services provider, Streamline Retail, which is owned and controlled by former SurfStitch CEO, Justin Cameron.
In a market update on Friday, SurfStitch said that lawyers for Streamline have indicated that the IT services company asserts rights over certain intellectual property under the prior contractual relationship between the two companies.
The rights and obligations, which the company says pertain to the ownership and control of “certain intellectual property rights”, are disputed. SurfStitch says that the disputed rights have not yet been clearly identified by Streamline, advising that its extent and possible impact on the company remains unclear at this stage.
Cameron resigned as CEO of SurfStitch in March, and has since been engaged in a public fight with the company over a disputed $20 million dollar content deal with Coastalwatch, a company which has also fielded unsolicited takeover bids for SurfStitch.
Streamline has provided IT services to SurfStitch group since 2014. SurfStitch have engaged contractors to ensure uninterrupted IT services moving forward.
SurfStitch announced a full year loss of $155 million in August last year, forecasting single digit sales growth in FY17.
This story first appeared on sister site, Inside Retail Australia.
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