The former operators of Samsung’s 11 Australian retail stores are being sued by Israeli retail giant Fox Group, which claims they withheld critical financial information during last year’s sale of Retail Prodigy Group (RPG).

Fox Group — the Tel Aviv–listed owner of global fashion and lifestyle brands including Samsung Stores, Sunglass Hut, Billabong and American Eagle — acquired RPG in 2024.

The company has since taken control of Samsung Australia’s retail expansion, opening a new store at Southlands, Cheltenham in Victoria recently.

But in a Federal Court statement of claim, Fox alleges the disclosure documents provided by RPG’s former directors and shareholders, including executives tied to ASX-listed Johns Lyng Group, were incomplete and misleading.

According to Fox, the sale materials excluded key management accounts, failed to reveal significant gaps between budgets and actual results, and omitted details on wage increases and discounting in the 2023–24 financial year. It also alleges the FY24 budget figures were “materially inaccurate” and that both gross profit and EBITDA came in far below forecasts.

RPG was previously owned by founder and former Jeanswest chief Stephen Younane, alongside a Johns Lyng Group subsidiary. The business has also partnered with Mattel, leveraging the Barbie brand to promote smartphones through its HMD relationship.

Fox’s first application was dismissed after both sides agreed not to proceed, but the court expressed frustration at the late inclusion of additional executives to the claim. Justice Michael O’Bryan even considered awarding costs against Fox.

A fresh application is expected to be filed, with the next hearing set for October 16.