Michael Hallatt, founder of Vancouver-based Pirate Joe’s, faces lawsuit from supplier.
Michael Hallatt: a name which sparks controversy and battle. After falling in love with the organic products of USA store Trader Joe’s, Hallatt believed they should be offered to Canadians as well. In 2012, Michael Hallatt opened Pirate Joe’s in Vancouver. Truckloads of Trader Joe’s products brought over the border by Hallatt were to be resold at a premium.
A war between Hallatt and Trader Joe’s erupted. Trader Joe’s claimed Hallatt falsely advertised their product and disregarded a federal trademark. However, Hallatt purchases products at their retail price, bringing in revenue for Trader Joe’s. Unfortunately, winning the lawsuit did not remove “Michael Hallatt” from the black-list, forcing Hallatt to hire shoppers.
Pirate Joe’s storefront in Kitsilano, Vancouver.
Pirate Joe’s is unsustainable, as taxes and costs of legal battles create a low profit margin. Rather than creating friction, Trader Joe’s ought to see Pirate Joe’s as an opportunity instead of a threat. Michael would make an exceptional cross-border employee as he knows the products and the business model of the company. Partnering with Pirate Joe’s offers an increase in business and an easy way into the Canadian economy. Until they come to this realization, Pirate Joe’s will remain: “Unauthorized. Unaffiliated. Unafraid.”
References:
http://www.traderjoes.com/about/our-story.asp
http://business.financialpost.com/2013/10/04/trader-joes-pirate-joes-lawsuit/