(Yicai Global) Dec. 16 -- C&A Commerce and Trade, the former Chinese business of Dutch fashion brand C&A, has received the latest in a string of fines this year as a result of disputes about sales and service contracts.

The latest penalty amounted to CNY6.6 million (USD1 million), bringing C&A China’s total fines this year to CNY36 million (USD5.2 million), according to information on corporate data platform Tianyancha.

C&A China, which changed its name to C&A Commerce and Trade when it was acquired by Zhongke Tongrog Investment Fund Management Beijing in 2020, has been involved in several court cases in 2022 due to its lousy business operation and issues with suppliers. Entities connected with the firm also defaulted on court orders, failing to pay about CNY15 million, and received so-called high-level consumption restrictions.

C&A had 66 stores in 22 Chinese cities before selling its China business as part of its downsizing strategy. Many have closed in the past two to three years because of the impact of Covid-19. A former store manager told Yicai Global that he left after Zhongke Tongrong’s takeover, while his team was dismissed soon after.

There is just one C&A store left in Shanghai and Beijing, according to Meituan’s crowd-sourced review app Dianping.

Some of the first overseas fashion brands to enter China did profit at the beginning, but consumers are less interested in second- and third-tier foreign brands now, so they are easily pushed aside by Chinese brands if they do not invest more in their operations, according to industry insiders.

Zhongke Tongrong joined hands with Nanjids.Com last year to set up a 40-60 joint venture to restructure C&A Commerce and Trade’s online business. But the pair never established the JV.

Last year, Zhongke Tongrong also bought a majority stake in the Chinese business of French apparel brand Beaumanoir. It sold 75 percent of the company in February.

Editors: Shi Yi, Futura Costaglione