Gerovital Cosmetics and Gemisa argue over joint venture

The two companies made a joint-venture in early 2006, under the name of Geroaslan, a company meant to create proper channels for distributing Gerovital products. Gemisa was to bring in the money, while Gerovital Cosmetics was to supply the products. Officials in the two companies disagree on the stage of their collaboration: Gerovital Cosmetics said the contract was canceled, while Gemisa considers the partnership is still valid.

Gerovital Cosmetics has ended any relations with other distributors and focused on Geroaslan production at preferential prices, according to company officials. In return, Geroaslan was to develop an investment plan worth €10 million in the coming years, which required a distribution lever and an image to allow the repositioning of a brand somewhat “dusty” in the past years.

Gerovital Cosmetics officials said Geroaslan has delayed payments for products received for several months, while the cosmetics producer was forced to declare bankruptcy.

However, the CEO of Gemisa lnvestments, Dragos Rosca, told Business Standard, “the partnership was not broken. We are still partners, you can check with the Commerce Registry.”

In a recent interview for Business Standard, Rosca said he was considering exiting this project, but declined to provide further details.

Although last year, upon launching the project, Gemisa was announcing investments worth €10 mln in Geroaslan, the total money invested in the past year did not exceed €1 mln. “The investments are made in accordance to the growth registered. We are not unsatisfied with this project,” Rosca said. Gerovital Cosmetics representatives, however, said the promised investments did not become reality.

Meanwhile, Geroaslan’s General Manager, Madeleine Florescu, recently stepped down. She said she is to start her own business in the luxury perfume field.

“The partnership was not broken. We are still partners, you can check with the           Commerce Registry.” Dragos Rosca CEO, Gemisa lnvestments