Donside Paper Company has been hit by more bad news, with merchant Premier Paper issuing a claim at the High Court of Justice in London.


This follows the severing of Premier's merchanting contract for Donside's Consort brand. Last month, Donside unveiled an exclusive merchant deal with Howard Smith Paper (PrintWeek, 13 October).


Premier Paper finance director Chris Davy said: "We have issued a claim for breach of contract, breach of confidence and an aspect of competition law."


But a spokesman for Donside said: "As far as we aware the particulars of a claim form have been filled in by Premier, but we do not expect it to go to litigation."


This followed an earlier denial by Donside of any legal action being taken, or that any was likely.


Donside claimed the termination of the contract was down to Premier losing its "independent stance" when it was formed, incorporating merchants Alliance, Guppy and Classic.


The Donside spokesman said: "Objections arose from Premier Paper stocking what was deemed to be competitive products.


"It was felt that this would provide a conflict of interests for Premier's salesforce."


Donside said discussions were taking place with Premier about the notification period that it was contractually obligated to provide.


Last week, Donside chief executive Bill Gore stepped down after putting together a refinancing package (PrintWeek, 17 November).


Story by Andy Scott