The foreign co-founders of popular craft shop Pomelo say they have been pushed out of the business they started amid a nasty row over ownership.
An investigation published today by the Myanmar Times reveals claims of threats and physical intimidation against the founder, general manager and lead designer, all fired last month.
Pomelo, a social enterprise that sources goods from dozens of Myanmar producers, was set up in 2013 as a local firm registered under the name of Myanmar partner Thea Thea because of restrictions on foreign enterprises.
Co-founder Rachael Storaas told the Times she recently sought legal advice about registering as a foreign-local joint venture as the firm had outgrown its structure as a simple souvenir shop.
That decision reportedly led Thea Thea to worry that the company was falling “under a foreign entity’.
“It felt like foreign people were taking over the shop,” she told the Times. “A lot of people raised the question – why does a foreigner want to be the owner of the shop?”
According to the Times, by mid-January a version of the firm had been registered as Pomelo Company Limited, with two board members listed: Thea Thea and Daw Htar Htar of Akhaya Women’s Association.
“Pomelo has always been a social business where foreigners and Myanmar people work together to produce and sell designed crafts that empower disadvantaged Myanmar producers,” Storaas told Coconuts Yangon in an email.
Letters of termination were delivered to Storaas, lead designer Ulla Kroeber and general manager Paula Camba last month.
CCTV footage posted to YouTube appears to show Neil MacIntyre, an adviser to Thea Thea, pushing Kroeber and her husband, Hans ten Feld, in the Pomelo shop on Thein Phyu Road.
According to the Times, MacIntyre also sent emails to Stooras threatening her with a legal case.
“We are determined to ensure that you are kept in this country so that we can have a court case against you to reinstate our reputation,” he wrote. “This will be a slow process. Today, while you still can, you might want to get yourself out of the country.”
MacIntyre told the Times: “There are provisions in the Myanmar Penal Code where a person is allowed to use non-excessive force to prevent a crime against, or to safeguard the damage to property or person; himself or another.”
He called the former management “usurpers who, by criminal use of force, took over illegal possession of the premises”.
A recent statement from the PCL board said: “At this time when Myanmar transitions to a more open and just society, Pomelo can act as a strong example for Myanmar social business across the country.
“Pomelo is in good hands and the Board wishes to thank its staff and producer groups for their great work, and the community for its ongoing support.”
The former employees have been advised to start over with another business.
More than 20 producers pledged their support in a recent statement.
“We rely on the expertise of Pomelo foreign members in developing new items … This is what made Pomelo successful and we wish not to jeopardise this success through relying on local expertise only… We wish to propose that the shop will be run again in the same manner as it was done before the 4th of February.”
Storaas told Coconuts Yangon: “We are happy to know that our Producer Groups are still interested in our ideas, designs and support training. We have a lot more to give. And a lot more has already begun to be set in motion.
“We are wanting to put this unfortunate cycle of events behind us and are looking forward to continue the working relationships that we have begun. Many are waiting for the go ahead that we are back in business. We plan to come back stronger and better.”
