Like a tailor unraveling a poorly stitched seam, a Chinese apparel manufacturer has pulled Incity into the courtroom with not one, but two lawsuits. Shaoxing Shengteng Trading, a supplier of clothing, footwear, and accessories, has filed claims against the Russian retail chain, demanding millions in unpaid dues—turning what was once a business partnership into a financial tug-of-war.
The first lawsuit, a relic of their 2022 supply agreement, demands $1.1 million plus interest and damages—a sum that hangs over the defendant like a guillotine. The second, dating back to 2020, seeks 17.8 million yuan in unpaid debts and penalties, as if the past has returned to collect its dues with compound interest.
The Moscow Arbitration Court will begin untangling this knot in mid-July, with preliminary hearings for the second case set for June. Legal observers whisper that the outcome could ripple through Russia’s retail fabric, already frayed by recent customs disputes involving other fashion giants.
This isn’t the first time Incity’s parent company, Modny Kontinent, has faced financial scrutiny. Earlier this year, a regional court ordered another subsidiary to cough up 79 million rubles in back taxes—a reminder that even in fashion, the numbers never lie.
Meanwhile, the broader industry watches with the tension of a runway model balancing on stilettos:
For now, the courtroom awaits its turn to play judge—not of hemlines, but of balance sheets.
