Saturday, June 22, 2024

A Twist in the Tale: Major Vaping Company Faces Financial Turmoil Amidst Allegations

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Recently, a notice was issued by the “JUSTFOG Liquidation Group” on June 3rd, announcing that due to their main international client, JFT Corporation, unilaterally terminating the contract and allegedly withholding payments, JUSTFOG has incurred losses exceeding 60 million yuan. This financial hit has led to severe operational difficulties, prompting them to initiate voluntary liquidation.

However, the plot thickens! JFT Corporation responded the next day via their JUSTFOG brand’s official website with a letter to JUSTFOG’s creditors, shedding light on their side of the story. Here’s what they had to say:

  1. JFT Corporation confirmed the termination of their partnership with JUSTFOG, citing that the real controllers and managers of JUSTFOG were involved in setting up related companies to inflate raw material prices and selling counterfeit JUSTFOG products.
  2. JFT denied any responsibility for JUSTFOG’s liquidation, stating that JUSTFOG’s dissolution was a result of criminal investigations into their actions post-termination, including bypassing the vaping product trading platforms to sell counterfeit products internationally.
  3. JFT also refuted claims of owing any outstanding payments or other financial obligations to JUSTFOG.

As murky as the vape juice market, this case has layers that only investigative bodies can definitively peel back. But for now, let’s focus on what this means for the industry.

Unveiling the Drama: A Deeper Dive into Company Dynamics

JUSTFOG, formerly known as Gisforte Electronics (Dongguan), has been a player in the vaping scene since 2014. Originally a Sino-Korean joint venture, JUSTFOG had deep ties with JFT Corporation, who were significant shareholders until their exit in January 2023. Post-exit, the remaining Chinese shareholders transformed JUSTFOG from a joint venture into a fully domestic entity.

Brand Battles and Patent Plays

JUSTFOG’s saga with JFT goes beyond typical manufacturer-brand relationships. Holding significant patents and a solid brand presence with JUSTFOG, JFT’s exit from the joint venture might hint at tighter regulations impacting foreign investments in the Chinese vape market. JUSTFOG, on its part, seems to have had stronger capabilities in core technologies like circuit design and temperature control, showcasing their prowess in the hardware of vaping devices.

From Vaping Vanguards to Corporate Casualties

The collaboration that once produced market-leading vape products has now disintegrated into a legal and financial quagmire. This tale serves as a stark reminder of the volatile nature of the vaping industry, where innovations and collaborations can evaporate as quickly as they condense.

Did you ever encounter the JUSTFOG brand, perhaps through their popular “Breeze” product line? Let us know in the comments below! We aim to remain neutral and provide you with both sides of every story.

We’re eager to hear your thoughts and insights on this situation. Who knows, maybe your comment will shine a new light on this tangled affair!

And remember, for more juicy stories and the unvarnished truth about the latest in consumer tech, keep your tabs open on our blog. Let’s explore the clouds of controversy together!

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