North West upholstery retailer ramps up its argument with Italian sofa manufacturer

1st December 2009 | upholstery | Preston independent retailer Cresta Furniture has escalated its ongoing legal dispute with sofa manufacturer Natuzzi by complaining to the Office of Fair Trading.

The North west retailer says the Italian upholstery company has tried to stop it from selling goods at prices lower than those set by Natuzzi, an allegation the manufacturer denies, and that it has submitted evidence to the OFT - the UK's consumer competition watchdog.

Cresta also issued a strongly worded statement to trade and consumer media on Friday. This has subsequently been published on the Internet on at least two consumer complaints websites.

Natuzzi sent the Furnishing Report the following statement in response last night (30/11/09): "We refer to the open letter of Cresta Furniture Limited dated 27th November 2009. Natuzzi would like to draw to your attention that there is an existing case between Cresta Furniture and Natuzzi in the High Court in England.

'The Court will deal with all matters raised, including any allegations of resale price maintenance; allegations that Natuzzi are vigorously defending against.

'Notwithstanding the above, as of today (30/11/09), the interim injunction that was initially granted to Cresta has subsequently been discharged by the Court, while Cresta has been condemned to pay all of Natuzzi's costs in connection to the same.'

The injunction referred to in Natuzzi's response is thought to relate to an attempt to draw on a bank guarantee made by Cresta after, it claims, its credit facility was removed by Natuzzi. Cresta says the discharge of the injunction was made with the agreement of all parties on the understanding that Natuzzi would no longer attempt to draw on the bank guarantee.