However, it was not just that, because this was only the beginning of a nightmare, not the entire nightmare!
After the cosmetic incident erupted, not only did the distributors demand an explanation, but several cooperating agents who had contracts with Eastern Group also called one after another, wanting to terminate their cooperation with Eastern Group and to reclaim their agency rights.
Even though it meant paying a substantial penalty for breaching contract terms, these partners were prepared to bear the cost!
Terminating partnerships, at this critical juncture, undoubtedly added insult to injury for Eastern Group.
For a company that primarily operated through agencies, losing agency rights meant losing their space for survival, a blow that was fatal!
Moreover, without the major cooperation partners, Eastern Group was crippled, though they could gain a significant breach of contract fee, at least helping them through the immediate financial crisis with some money left over!
