Lee jeans owners file suit

Stockholders owning half of Authentic American Apparel Inc. (AAAI), the company that manufactures the Lee brand of jeans, have filed a suit seeking for the appointment of a receiver that would direct the affairs of the corporation.

The suit was brought by George T. Siy, Jacqueline Siy-Share and Angeline Siy-Feichter against their siblings Bernadine, Wilfred and Frederick Siy as well as other companies and personalities for alleged dissipation of AAAI assets.

In the suit filed before the Regional Trial Court of Parañaque City, George and his sisters also sought the issuance of a preliminary injunction enjoining the defendants and their representatives from "further taking the funds and other resources of AAAI" and "diverting the same to the business of North Star Apparel Corp., Core Lifestyle Clothing Inc., and E-Denim Corp."

The plaintiffs also asked the court to create a management committee that would run AAAI. They said this is necessary since "there is imminent danger of dissipation, loss, wastage or destruction of assets and other properties of AAAI."

According to the suit, the six Siy siblings equally own 20,834 shares each of AAAI which had a license agreement with VF Corp. Asia representing H.D. Lee Co., owners of the Lee brand of jeans known worldwide.

This license agreement is part of the complaint since the plaintiffs said in their court filing that the defendants have renewed the Lee agreement through terms that are detrimental to their interests although they own half of the company.

The plaintiffs said they are willing to file a bond in such an amount the court may determine to support their move for the creation of a management committee.

They also asked the court to award them actual damages amounting to P90 million and exemplary damages of P5 million.