Truworths settles branding dispute with UK retailer Primark.

Truworths and Primark have reached an “amicable settlement” over the ownership of the name of the UK fashion retailer, with the remaining Truworths stores under the name set to be rebranded.

The JSE-listed retailer had been embroiled in a long-running dispute with the fast fashion seller’s brand in a case that reached the Supreme Court of Appeal in 2019, after Truworths won an appeal to expunge Primark’s ownership of the trademark in the country.

The UK retailer had registered that name in South Africa in 1976, and renewed its registration in 1997 and 2006, filings with the Companies and Intellectual Property Commission show. Truworths had also applied to trademark “Primark” for use in the clothing sector, but the application was denied.

The Primark brand that Truworths intended to establish had no connection to the UK retailer, other than using the same name, Business Insider reported.

Truworths CEO Michael Mark has revealed that the boards of the two companies have reached an “amicable settlement” over the matter, with details of the deal said to be confidential.

“Both boards are comfortable with the outcome, there is no acrimony … we will not disclose in detail the settlement but both boards are comfortable with it,” said Mark said during the presentation of the company’s financial results last week.

The first Primark South Africa store was opened in April 2021, and Truworths’ own brand store, SYNC, opened in August 2021. Mark stated that the remaining Primark stores operated by Truworths will be converted to SYNC.

“A lot of merchandise in SYNC and Primark are the same, but the merchandise is branded SYNC on the outside. The remaining 11 Primark stores operated by Truworths will be converted to SYNC in the coming months,” said Mark.

Truworths had high hopes for the Primark brand ahead of launching the shops in the country, and, in 2021, Mark had remarked the shops would carry “good quality, nowhere near Truworths and Identity, but still acceptable quality and great value with highly competitive prices”.

Truworths owns Identity, YDE, Uzzi and Earthchild and was hoping to use the Primark shop to tap into the value segment of the market.-ebusinessweekly