NEWTON, Mass. -- (BUSINESS WIRE) --
Euro-Pro Operating LLC, a successful Boston-based developer and marketer of innovative consumer products for the home, has filed suit against Elect-Tech International Co., Ltd. (ETI), a China-based OEM and ODM manufacturer in the home appliances industry.
After working together for several months in a product development effort, Euro-Pro terminated its relationship with ETI in July of this year after the manufacturer could not produce products that met Euro-Pro’s high quality standards. Given Euro-Pro’s mission to provide its consumers with competitively priced, 5-star-rated small household appliances, the company was forced to reevaluate the development relationship with ETI.
ETI brought its legal action in a Zhuhai City Intermediate People's Court and sued Euro-Pro for US$6.8 million* for allegedly completed products and samples, as well as damages caused by the cancellation of orders. In response, Euro-Pro started arbitration in the parties’ agreed forum in Boston against the ETI subsidiary with whom it had contracted, claiming damages in excess of US$18 million.
“We are disappointed it has come to the point where we have to take legal action, but ETI was unable to fulfill their obligations to produce first-rate products for our brands,” says Mark Barrocas, President of Euro-Pro. “Our company continues to grow and thrive because we won’t settle for anything but the best when it comes to the quality of the appliances. We refuse to attach our name to anything that does not reflect the outstanding performance our customers have come to expect from Euro-Pro products.”
Euro-Pro’s constant innovation and valuable product contribution in the housewares industry has earned the company an impressive number of awards and accolades over the years. Most recently, Euro-Pro was honored with the 2013 Direct Response Marketing Alliance (DRMA) Marketer of the Year Award. This award, one of the most prestigious in the direct response industry, acknowledges Euro-Pro’s ongoing, dominant role in the DRTV space, a fact that has greatly contributed to the company’s retail and branding success. For four consecutive years (2009-2012) the company has been ranked among the fastest-growing privately-held companies on Inc. magazine’s Inc. 5000 List. Euro-Pro was recognized for awards by Parent Tested Parent Approved (PTPA) for five of its products. Additionally, the company has been selected to receive the Wal-Mart Supplier of the Year award many times and multiple awards with BJ’s, including Vendor of the Year.
Euro-Pro and ETI will meet in a Boston-based arbitration in the coming weeks.
About Euro-Pro
Euro-Pro, an innovative leader in the housewares industry creates high quality products that make consumers’ lives easier. Euro-Pro provides the latest in easy-to-use technology with a growing line of products that consists of corded and cordless vacuums, steam mops and cleaners, irons and garment steamers, and a variety of small kitchen appliances. All Euro-Pro products are designed to fulfill multiple consumer needs, eliminating the need for extra appliances that add clutter and inconvenience to a home. Products are sold at major retailers throughout the U.S. and Canada, as well as directly to consumers. Euro-Pro is a trademark of Euro-Pro Operating LLC.
* Correction to a report by Reuters on Sunday, September 29, 2013 indicating that the ETI lawsuit claimed Chinese Yuan RMB 6.8 million.
CONTACT:
for Euro-Pro Operating LLC
Rachel Madden, 312-245-9805 Ext. 114
Rachel@alpaytac.com