A French court has ordered Specialized to pay €500 000 to cover future losses incurred by Ets. José Alvarez, the former distributor of Specialized in France, now the distributor of GT. The US company can appeal the decision.

Specialized faces stiff fine for ditching French distributor

Specialized was criticised by the court for "terminating suddenly and abusively" its distribution contract with José Alvarez, reports Bike Europe.

As well as the €500 000 fine, Specialized has been ordered to pay € 20 000 for settlement of outstanding accounts and €18 000 in legal costs.

It’s probable that Specialized will appeal the decision and the huge fines will be either reduced or overturned. Shortly after losing the rights to Specialized, José Alvarez was appointed French distributor for GT.

The president of Ets. José Alvarez is Alain Goetzmann, the president of Cycleurope from 1996 to 2000.



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