Organic baby food producer Infant Food Co (IFC), a subsidiary of Bubs, has succeeded in suing its former Chinese partner’s subsidiaries Hong Kong-registered Alpha Professional Holdings, Alice Trading and Willis Trading for breach of contract and damages.
On April 28, the Australian Centre for International Commercial Arbitration handed down its awards in the arbitration proceedings, totalling $22.9 million against Alice Trading and $3.6 million against Willis Trading, brought by IFC.
In 2023, Bubs had sold $44 million worth of stock, enough to sell five years’ worth of orders, to the trading companies that remained unsold.
Bubs terminated then-CEO Kristy Carr in the aftermath of the incident, for acting against the board’s directions, which had expressed concerns about the decision to sell such a large quantity of product to Alice Tradings and Willis Tradings.
Bubs said in a stock-exchange filing on Tuesday that it will now consider options for the recovery of the money owed by the Hong Kong companies.
