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In the latest development on the fallout between the two companies, Loob CEO Bryan Loo said the company denies all allegations by La Kaffa in its media statement issued on Feb 3, 2017. "The allegation in the press statement that 'raw materials' were used 'that were not part of approved recipes' may give rise to the misimpression that there was a compromise in the quality of the company's Chatime products in Malaysia. Quotes in the article "This is entirely untrue," Loo said in a statement dated Feb 5. "This is not part of La Kaffa's contentions, at any time, in the ongoing dispute between the parties." Loob will continue to innovate through "product localisation" for all its associated brands, he added. "The Loob team has always prided itself on the fact that we had built up the business in Malaysia and we will never compromise on the quality of our products," Loo said. On the outstanding payments claim by La Kaffa, Loob said it, too, has outstanding claims against La Kaffa. "Any amounts alleged to be due from the company to La Kaffa, if read more here established, will be set off against the former sums. "We have no wish to engage in litigation through the media and are presently awaiting the legal process to take its course," he added. Loob, which has 10 brands under its belt, said the company has made substantial early investments to secure the 30-year contract with the franchisor. "This is evidence of the company's firm intent for a long-term franchise.
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