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European Apparel vs Billabong & Brad Bleick
Aug '11
The Law firm of Richard G. Anderson has filed suit on behalf of the plaintiff, European Apparel, in the Superior Court of Orange County, California. The suit against Billabong USA (BBG:AX) and Brad Bleick, Inc. is for unspecified damages resulting from breach of contract, alleged fraud, and alleged conspiracy to commit fraud.

The lawsuit alleges that Paul Naude, the Executive Director and General Manager of Billabong, USA, did issue written authority in April 2011 to European Apparel authorizing them as a distributor for Billabong in various markets. As a result European Apparel commenced advertising Billabong to their clients, seeking and gaining orders from independent third parties. An amount of $275,000 was paid to Billabong's agent, Brad Bleick Inc., in order to commence production of the initial order of Billabong products. The funds were duly paid.

Billabong arbitrarily decided not to honor the agreement. $100,000 of the initial order deposit has not been repaid, causing the Plaintiff to suffer financial hardship. Additionally they have lost the trust and respect of business partners and networks.

The plaintiff is requesting the return of $100,000 deposit still being held by Billabong USA or its agent, Brad Bleick. Additionally European Apparel is suing for unspecified damages as they ceased to operate and were forced to cancel all existing orders with their independent third party distributors and retailers who were expecting to receive Billabong products. European Apparel's reputation as a legitimate supplier of authentic surf and skate clothing lines has essentially been destroyed.

Brad Bleick is an employee of Alstyle Apparel, a major supplier of t-shirts to the surf and skate industry. Alstyle is a wholly owned subsidiary of Ennis, Inc., with a market cap of over $500million. Billabong USA is a division of Billabong Australia (BBG: Aus) with a market cap of nearly $2Billion.

European Apparel LLC

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