The fashion, beauty and lifestyle e-commerce retailer, headquartered in China, Club Factory has suspended its operations in India, about 2 weeks after the Government banned it along with 58 other Chinese apps due to national security concerns and rising tensions with China.
According to an e-mail sent to sellers, reviewed by ET, the company has temporarily suspended its operations in India and has put its seller payment settlements on hold in the country until the ban on its app and website is lifted.
The e-mail to the sellers read that “the Government has mandated complete suspension of the business activities of Club Factory (CF) in India in light of the ban imposed by the Government on the CF app,” further adding that the company, thus, informs that “all settlements with sellers on the CF app and website are hereby being put on hold until the ban of the CF app and website is lifted.”
It was also highlighted in the e-mail that “the Government notification banning the access to CF (Club Factory) app and website in India also constitutes a Force Majeure Event.”
It is noteworthy that immediately after the Indian Government banned 59 Chinese apps earlier this month, Google also removed all the apps from the Play Store.