Private Equity railroads Dutch couple in Dubai
Private Equity railroads Dutch couple in Dubai
Machines being stolen while they were confiscated, a 22-million claim, and court orders being ignored to date. These past six months, Frans Giezen and Nelke van Aspert, originally from the Province of Brabant, living in Dubai and founders of Power Plate Middle East have been trying to get compensation for damages their company has suffered from Power Plate International. Power Plate International is the property of the American private investor behind Pizzahut, Herbalife and Brooks Sport.
After repeated, failed attempts by others, the Dutch couple - Frans Giezen and Nelke van Aspert - decided to introduce the Dutch fitness brand Power Plate on the Middle Eastern market in the fall of 2004. The brand gained momentum thanks to Dutch diva Conny Breukhoven and fitness guru Guus van der Meer.
In 2004, after having sold all their possessions, the couple started this adventurous enterprise together with their three children. After many investments, personal sacrifices, ups and downs, blood, sweat and tears, they did well in a relatively short period of time and managed to develop the brand into an established name from scratch.
They sold as many as 650 machines in less than 2 years.
In the spring of 2006, Power Plate was taken over by the American private equity investor J.H. Whitney & Co. Both Guus van der Meer and the new directors of Power Plate International promised that everything would remain the same.
Notwithstanding that promise, they were soon given a new contract to sign which was offered saying that the 'current' contract was no good. After consulting a prominent law firm in Dubai, it was clear to the couple that on as many as 35 issues the contract would be very disadvantageous to them as distributors, five of which were even illegal under Middle Eastern law.
In the meantime, the couple were receiving threatening e-mail messages saying that no more machines would be delivered and concerning the imminent liquidation of Power Plate International with which they had a contract as distributors.
When they informed the management of the fact that the new contract was no good, they were 'requested' to leave any further correspondence to the lawyers.
On 19 October 2006, Power Plate International eventually cancelled the current contract with the couple, without any previous notification and per that date.
The grounds for cancellation were untruthful and based on facts and circumstances that had been known to Power Plate International for a long time and in cases even for more than 18 months. It was crystal clear that the reasons put forward did not justify the cancellation of the contract in any way.
"We've been wronged. We've done all the hard, ground-breaking, work and now that we finally could've reaped the rewards, Power Plate International pulls the plug using lies to do so!" says an emotional Nelke van Aspert. "This is unacceptable, we've had to fire 22 employees. But we're very confident in the Dutch legal system and we'll keep defending our rights." "They should think better of it soon because we intend to fight until the bitter end", Frans Giezen adds.
The couple's statements are based on the outcome of several lawsuits in the Netherlands. To date, all summary proceedings were decided in the couple's favour. Proceedings on the merit of the case have been started.
In recent summary proceedings, a judge awarded the couple a sum of EUR 900,000 as an advance on the total claim and Guus van der Meer may even be held liable.
The earlier confiscation of his possessions was therefore maintained.
However, no payments have been made to date, which is why the couple have successfully applied for many confiscations. Nelke van Aspert: "Apparently they think they are above the law, because several confiscated machines were recently stolen, which is clearly a criminal offence."
It is unclear when there will be a final decision on the matter.
Meanwhile, the couple wishes to warn against the behaviour of hedge fund directors and private equity investors. "It is not just the "big fish" like Stork who are victimised," Frans Giezen explains. "Let us be an example of how it can happen to the smaller entrepreneur too."
Note to editors:
Frans Giezen / Nelke van Aspert
nelke@hollandmet.com
+971.50.456.0.874
Marielle Koppenol / Jan Meuleman (lawyers)
Tel +31.20.605 63 93
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