Pooraka petrol station stripped of X Convenience and Mobil branding amid District Court battle over large debt
A northern suburbs petrol station has been ordered to remove Mobil and X Convenience branding amid a legal battle over nearly half a million dollars.
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A northern suburbs petrol station has been stripped of its X Convenience and Mobil branding as part of a bitter District Court legal battle.
Andrash Group, which owns the X Convenience brand and is licensed to use the Mobil and Synergy trademarks and logos, alleges the owners of the outlet on Main North Rd, Pooraka, owe $488,000 as part of a fuel supply deal.
Because of the debt, they wanted the branding removed from the station immediately.
But the three companies involved in running the station argued it would cost them $100,000, partly from the loss of customers it would cause.
They said they should have six weeks to make the change.
But District Court Judge Michael Burnett has ordered that the branding be removed immediately.
The Advertiser visited the servo on Sunday, confirming it has been done.
The station was supplied with fuel by Andrash from 2017, with an informal oral agreement dictating the terms of the deal.
Richard Ross-Smith, acting in court for the three companies, said that the agreement had been broken but denied that it was the companies’ fault.
Andrash claims it was owed $191,285 for fuel within months of entering the deal, with the debt eventually climbing to nearly half a million dollars.
In January, Andrash sent a letter to all three companies saying the agreement had been terminated because of the debt.
The case will return to court next month for argument over which party was responsible for breaching the original fuel deal.