Shoprider’s Wu runs afoul in Britain

Friday, December 31, 2004

LONDON - After failing to pay $24.4 million in damages to the former European distributor of Shoprider scooters, the London High Court has held Donald Wu, chairman of Pihsiang Machinery Manufacturing Company, in contempt of court and ordered him to prison for 28 days.

In January 2004, the High Court held Wu and Pihsiang liable for damages after deciding that Pihsiang had broken its supply agreement with DCC, its U.K.-based distributor of Shoprider scooters since 1996.

Pihsiang’s U.S. distributor, Shoprider Mobility Products, said the U.K troubles should not have any bearing on the company’s U.S. operations.

“The information you may have learned in terms of this dispute belongs to routine court proceedings and does not affect Pihsiang’s or its subsidiary’s business at all,” David Lin, president of Shoprider, wrote in an e-mail to HME News.

Pihsiang and DCC signed its first, exclusive five-year distribution agreement in 1996. In the original contract, DCC’s DMA subsidiary was granted the right to renew the contract every five years if the distributor was selling at least 5,000 units annually.