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Thread: GJs in court

  1. #1
    Senior Member flynnaus's Avatar
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    GJs in court

    Gene Cafe Coffee Roaster $850 - Free Beans Free Freight
    SMH Today

    Coffee giant embroiled in bitter battle over beans

    THE coffee giant Gloria Jeans is facing a multimillion-dollar lawsuit that threatens to lift the lid on one of the most secretive companies in Australia.

    Owned and run by the Hillsong Church elder Nabi Saleh and the high-profile church member Peter Irvine, Gloria Jeans parent company, Jireh International, is accused of breaking a joint venture agreement with a small US-based coffee supplier, Western Export Services.

    Western is suing Jireh for $56 million in unpaid commissions and damages. Jireh has launched a cross-claim, saying the 1996 agreement was invalid.


    etc

  2. #2
    Senior Member simonsk8r's Avatar
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    Re: GJs in court

    Yeah i read about this.. I work at Gloria Jeans (actually one of the passionate baristas, and not just plodding along for the money), we havent been informed about this court case at work, nor has it affected us in any way, but well see. Im not sure exactly what wasnt paid... Ah well

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    CoffeeSnobs Owner Andy's Avatar
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    Re: GJs in court

    Quote Originally Posted by 352F2B2928352D7E34460 link=1271628947/1#1 date=1272708042
    actually one of the passionate baristas
    Being a member of CoffeeSnobs is a give away... the "plodders" would never spend their spare time checking-out a coffee forum or tring to advance their craft.

    8-)

    Quote Originally Posted by 202A3F2828273335460 link=1271628947/0#0 date=1271628947
    Western is suing Jireh for $56 million
    and the article quotes... "Gloria Jeans coffee chain has global sales estimated at $500 million a year".

    $56,000,000 is pocket change eh!

    :o

    The case begins today in the NSW Supreme Court and is expected to run for three weeks. -- SMH 19/4/2010

    Well its been 3 weeks and no news... I wonder if this is another court case that goes out with a (under the counter) whimper?

    :-?

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    Senior Member flynnaus's Avatar
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    Re: GJs in court

    Quote Originally Posted by 456A607D040 link=1271628947/2#2 date=1273801271
    Well its been 3 weeks and no news...
    Yes, nothing since the article came out. Either it was settled quietly (likely) or the case has been adjourned.

    I suspect the newsworthiness was perhaps more about the connections to Hillsong than GJs.

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    Re: GJs in court

    Expect either settled or it will take 3-4 years with likely appeals and other such stalls. Just wait to see the Hillsong Church promotion/expose on ch 7 on Sunday night see if the connection pops up again.

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    Re: GJs in court

    Quote Originally Posted by 646E7B6C6C637771020 link=1271628947/3#3 date=1273806401
    Quote Originally Posted by 456A607D040 link=1271628947/2#2 date=1273801271
    Well its been 3 weeks and no news... *
    Yes, nothing since the article came out. Either it was settled quietly (likely) or the case has been adjourned.

    I suspect the newsworthiness was perhaps more about the connections to Hillsong than GJs.
    http://www.lawlink.nsw.gov.au/courtlists/nswsc_lists.nsf/5ab5d5b26b500891ca256755000ac4b2/4298f6f80093d751ca25771f001b84e7?OpenDocument
    Jireh (GJs head company) is listed for the 11/3 but not the following days.
    Nothing listed in the judgements page http://www.lawlink.nsw.gov.au/scjudgments/2010nswsc.nsf/WebView4?OpenView&Start=1&Count=1000&ExpandView
    Love the judges name: Hammerschlag J

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    Senior Member Luke_G's Avatar
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    Re: GJs in court

    Interesting to see if this affects the price of there product if they do happen to loose and be out of pocket? They seem like the kind of company that will pass on the cost of the court case.

    Not that ill ever know the price of a cup at GJs.. The only thing i have had to do with GJs is there RFA Columbian they use...i have it green :D

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    Re: GJs in court

    Quote Originally Posted by 2F1608063C24630 link=1271628947/6#6 date=1273978037
    Interesting to see if this affects the price of there product if they do happen to loose and be out of pocket? They seem like the kind of company that will pass on the cost of the court case.
    If they do it will be to the franchise partners, not necessarily the customers.

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    Re: GJs in court

    Just read this, of course will drag on to another round but they seem to have lost the first one.

    http://www.smartcompany.com.au/legal/20100618-court-finds-gloria-jeans-breached-agreement-with-former-supplier-as-judge-criticises-founder-nabi-saleh.html

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    Re: GJs in court

    It has the makings for a house of cards me thinks ::) Interesting tie up with this lot too before they wound up in Oz http://www.smh.com.au/national/mercy...1027-hj2k.html

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    CoffeeSnobs Owner Andy's Avatar
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    Re: GJs in court

    Hmmm... with an expected 13.5 million in damages thats the gross from the next 3,000,000 double caramel lattes @ $4.50ea

    ...or $15,000 per store.

    Ouch!

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    Senior Member GregWormald's Avatar
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    Re: GJs in court

    I find it interesting that he doesnt appear to be at all concerned that God might punish him. 8-)

    Greg

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    Senior Member simonsk8r's Avatar
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    Re: GJs in court

    Okay, so I dont know if this has ANYTHING to do with it (although it is odd...), but the prices of the drinks in our GJ store are going up 15CENTS. Thats right, 15 cent increase drink (which is a MASSIVE increase). Fair few customers are gonna complain me reckonz...

    But nobody knows why prices have gone up, so whether its related to the court case who knows...

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    Re: GJs in court

    When did that happen? Havent seen anything to that effect for my store.

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    Senior Member simonsk8r's Avatar
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    Re: GJs in court

    Its happening as of next week for us (Geelong), I dont know who else its affecting, or WHY its being put in place...

  16. #16
    Senior Member simonsk8r's Avatar
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    Re: GJs in court

    Okay, so the price rise didnt happen this week for some reason even though I was told it was. Ah well

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    Senior Member Rocky's Avatar
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    Re: GJs in court

    Had my first GJs last week. First time at a meeting where they generously ask you to nominate your coffee preference & then have it on the table for the meeting.
    As it was an 11.00am meeting and I have already had morning tea by then so I thought I would order a Piccolo Latte and see what I ended up with.
    It was certainly a Latte but although marked "piccolo" was the normal quantity in the regular size take-away cup. I didnt like the flavour - something strange tasting lingers on the palate.
    I guess you cant complain too much when it is a freebie.
    Maybe next time I will see what they do with a Machiato (Im betting it will be exactly the same)

  18. #18
    Senior Member Yelta's Avatar
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    Re: GJs in court

    Quote Originally Posted by 08353931235A0 link=1271628947/16#16 date=1278317772
    Had my first *GJs last week. First time at a meeting where they generously ask you to nominate your coffee preference & then have it on the table for the meeting.
    As it was an 11.00am meeting and I have already had morning tea by then so I thought I would order a Piccolo Latte and see what I ended up with.
    It was certainly a Latte but although marked "piccolo" was the normal quantity in the regular size take-away cup. *I didnt like the flavour - something strange tasting lingers on the palate. *
    I guess you cant complain too much when it is a freebie.
    Maybe next time I will see what they do with a Machiato (Im betting it will be exactly the same)
    Guess if it cost ya nothing you cant complain at all, never look a gift horse in the mouth. ;)

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    Re: GJs in court

    Quote Originally Posted by 4F737A6277160 link=1271628947/17#17 date=1278318504
    gift horse
    maybe that was the where the "special" lingering flavour came from ;D

  20. #20
    Senior Member flynnaus's Avatar
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    Re: GJs in court

    The saga continues

    Gloria Jeans owner is insolvent, court told

    THE parent company of Gloria Jeans Coffee, co-owned by the Hillsong Church elder Nabi Saleh, is in financial dire straits and should be put into liquidation and an investigation held into its affairs, the NSW Supreme Court has been told.

    It is the latest shot fired in the multimillion-dollar lawsuit against the coffee giants parent company, Jireh International, by a small US-based coffee supplier, Western Export Services.

    On June 11, the court ruled that Jireh must pay the export company millions in commissions and interest after it found Jireh had breached a joint venture agreement. Yesterday the parties were back in court, fighting over the formula used to calculate the total owed to Western Export Services.

    Both parties were required to submit evidence to the court on their financial circumstances. The defendant is hopelessly insolvent, said Jim Johnson, counsel for Western Export Services. There are public policy issues as to whether this company should be allowed to keep trading.

  21. #21
    CoffeeSnobs Owner Andy's Avatar
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    Re: GJs in court

    Hmmm...

    I know the couple of Gloria Jeans cafes that I drive past used to be buzzing with people spilling onto the street but in the last 12 months are looking pretty empty while other, smaller coffee offerings are popping-up all over the place and filling seats.

    Might just be a flavour of the month cycle but I think as a franchise owner I would be uncomfortable at the trend.

    Quote Originally Posted by 5B514453535C484E3D0 link=1271628947/19#19 date=1281998251
    The saga continues
    ..and an interesting one at that. Thanks for posting it Flynn.

  22. #22
    Senior Member flynnaus's Avatar
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    Re: GJs in court

    Quote Originally Posted by 735C564B320 link=1271628947/20#20 date=1282008257
    I know the couple of Gloria Jeans cafes that I drive past...in the last 12 months are looking pretty empty.
    Might just be a flavour of the month cycle but I think as a franchise owner I would be uncomfortable at the trend.
    Ditto here. Once, I used to see queues at the local Starbucks and no empty seats at the local GJs. Australians are definitely becoming more discerning. Could be a CoffeeSnobs-led revolution?

    Slightly off-topic but I sold some PNG Wahgi to my colleague last week after giving him a taste of some Gambella prepared in a Aeropress. He came to work raving about how good the coffee was and that he could still taste. I replied, "Welcome to my world".

    I gave him some info on cold press (sourced from CS, of course) after he asked about storing pre-brewed coffee in the fridge

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    Re: GJs in court

    Quote Originally Posted by 3C362334343B2F295A0 link=1271628947/21#21 date=1282009493
    Quote Originally Posted by 735C564B320 link=1271628947/20#20 date=1282008257
    I know the couple of Gloria Jeans cafes that I drive past...in the last 12 months are looking pretty empty.
    Might just be a flavour of the month cycle but I think as a franchise owner I would be uncomfortable at the trend.
    Ditto here. Once, I used to see queues at the local Starbucks and no empty seats at the local GJs. Australians are definitely becoming more discerning. Could be a CoffeeSnobs-led revolution?

    Slightly off-topic but I sold some PNG Wahgi to my colleague last week after giving him a taste of some Gambella prepared in a Aeropress. He came to work raving about how good the coffee was and that he could still taste. I replied, "Welcome to my world".

    I gave him some info on cold press (sourced from CS, of course) after he asked about storing pre-brewed coffee in the fridge
    In my neck of the woods I think this style of "cafe" is just a victim of their own success. They had a ridiculous market share and a huge customer base, but now every man and his dog has a multi-group machine, 100kgs of stale "signiature" beans and a few dozen bottles of sugar syrups on the counter. You can get an 800mL takeaway cup full of weak, over-milked, underextracted and syruped up swill from pretty much any shop that sells any kind of food or drink (even Maccas), so you dont have to go to Starbucks, GJs anymore. My local Turkish restaurant doesnt make Turkish coffee anymore, but they do have a two group and all the syrups. So do all of the Chinese restaurants. Yet there is still only the same one or two really good cafes in the CBD :-?

  24. #24
    Senior Member Rocky's Avatar
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    Re: GJs in court

    I know this is off-topic but thought you might be amused to know (in relation to my previous post about the Piccolo Latte) that at the next meeting I again gave my order to the meeting convenor for the same but added "Thats a single shot with a small amount of milk in their smallest cup".
    Result - they got it right - they actually do have small cardboard Espresso cups. Still not the greatest tasting coffee but Ive had worse.
    (coffee was delivered by a GJs employee who acknowledged with a smile that they had got it wrong previously but were now on the pace)
    I felt a bit pleased that I had helped educate someone.

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    CoffeeSnobs Owner Andy's Avatar
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    Re: GJs in court

    Quote Originally Posted by 566B676F7D040 link=1271628947/23#23 date=1282442940
    I felt a bit pleased that I had helped educate someone.
    Nice work Rocky. Will make it a smoother transaction for the next guy too.

  26. #26
    Senior Member Yelta's Avatar
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    Re: GJs in court

    Behmor Brazen - $249 - Free Freight
    Quote Originally Posted by 627979626B030 link=1271628947/22#22 date=1282105547
    So do all of the Chinese restaurants.
    A couple of the local Chinese eateries in our area have espresso machines and grinders but you wouldnt drink their coffee in a fit. :P



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