BEIJING - Troubled retailer Da Vinci has denied it lied about the origins of its furniture products and plans to sue the Shanghai Industrial and Commercial Administrative Bureau (SHAIC) after being fined 1.33 million yuan (US$210,293), China Youth Daily reported.
The Shanghai-based company, which has been accused of selling furniture made in China while claiming it is imported from Italy, said on its micro blog that the SHAIC had abused its administrative rights.
An investigation was launched in July after reports accused Da Vinci of lying about the origin of production and selling inferior-quality products at high prices.
The company claimed its furniture was made in Italy, but it had actually been manufactured in Chinese factories, "exported" to the Shanghai Waigaoqiao Bonded Zone, and later "imported" back to its warehouses in Shanghai.
The news sparked a wave of public anger as Da Vinci is one of the most expensive luxury furniture brands in China.
The initial apology, issued by Da Vinci for not handing out instruction manuals in Chinese for some furniture, has been removed from the company’s official website.
Da Vinci is reportedly opening a fourth flagship store in Shanghai.