C & C Companies was stunned at the unexpected announcement by R…And Everything Else, Inc. (“Rdot”) that, acting through new management appointed by its new controlling shareholder, Vegas Enterprises Pty Ltd. of Australia (“Vegas”), it has terminated the worldwide, exclusive, 40 year license of C&C Partners, Ltd. for the Rusty brand and that the Rusty brand will hereafter be distributed by Rdot and/or Vegas. On May 17, C&C received a temporary restraining order against Vegas and R…And Everything Else, preventing the Australians from continuing to claim that C&C’s license with Rusty is over.
The full history is as follows:
Vegas is C&C ‘s Rusty brand sublicensee for the territory of Australia, where they have had much success. Last summer Vegas purchased a controlling interest in Rdot formerly owned by Rusty Preisendorfer. C&C’s principals (Donald Clark and Paul Carr) own a substantial minority interest in Rdot.
Prior to their assumption of control over Rdot, Vegas sought to purchase C&C’s Rusty business interests but C&C was unwilling to sell. Failing to purchase C&C’s Rusty business, we believe Vegas concocted a plan to acquire a controlling interest in RDot in order to get rid of C&C by terminating C&C’s license on whatever grounds Vegas could fabricate, and to seek to terminate Carr’s and Clark’s substantial stock interests in Rdot through various corporate maneuvers using their position as majority shareholder. In response to these actions, C&C filed a lawsuit against Rdot and Vegas Enterprises several months ago in the Orange County Superior Court, a case which is currently pending. C&C also recently commenced an arbitration proceeding against Vegas because Vegas is in breach of its Australian sublicense agreement with C&C.
During the past weeks, Vegas, and its controlled company, Rdot, have even more aggressively pursued these goals.
Any inquiries should be directed to Donald A. “Dac” Clark, President of C&C.