HP-2020-000016 - [2025] EWHC 1451 (Ch)

By the end of August Ms White reported to Cabo that sales at B&M had slowed, and she therefore cancelled a further order that had been placed for the 10-packs. The 5-pack had not been reordered after July. Again, the Cabo founders doubted the sales figures they were being given by B&M, with Mr Michaelson commenting in September that “There is no reason to think that B&M for example are selling less than they were originally. It is more than possible that the low numbers they gave in the beginning were genuine and the numbers could be building.” Again, however, there is no evidence that B&M’s reporting was inaccurate. Rather, the reality appears to have been simply that the product did not maintain its popularity beyond the mid-August peak.

There is a dispute about when B&M stopped purchasing Worldeez altogether. Ms White’s recollection was that there were no further orders after the end of 2017. While there were invoices dated 19 February and 5 March 2018, Ms White believed that those would have related to orders placed at the end of 2017. Whether or not that is the case, there is no evidence of any purchases by B&M after the start of March 2018.

On 20 February 2018, Mr Arora emailed Mr Laughton offering to “drop Worldeez in favour of LOL”. In a subsequent WhatsApp conversation on 28 February, Mr Arora again offered to drop Worldeez (as well as the Zuru 5 Surprise toy which Mr Larian also objected to). Given the evidence as to the fall in sales of Worldeez in B&M after August 2017, I consider that this offer was simply posturing, or as MGA put it a “negotiating bluff” by Mr Arora. Mr Arora was offering to give up a product which in reality either had already been discontinued by B&M, or was about to be discontinued, in the hope of using that ostensible sacrifice to obtain supplies of LOL Surprise.

Mr Laughton responded on 1 March, “I cannot tell you to do that Bobby but you have to decide to take the brand or not. PS I have found 20000 lol pets and 20000 lol sisters for you – delivery first week in may … hope this makes you happy”. Mr Arora replied “We will drop all other skus. Need few weeks to sell down.” On 1 March 2018 Mr Arora sent an email to Ms White, copied to Mr Laughton, confirming the arrangement: “Andrew sorting deals and lol. If deal Ok, drop 5 surprise and worldeez. Hopefully will sell out over Easter hols. And then push lol. Rrp. Andrew: pls send deal stock to Hayley today.” In cross-examination, Mr Laughton accepted that Mr Arora had in these emails agreed with him to drop the Zuru 5 Surprise toy and Worldeez in order to get supplies of LOL Surprise.