Yu Jianguo, a lawyer from Shanghai Tangshen Advertising Company, has told local media that the court has sealed two trademarks of PPG, a leading clothes seller in China, because the company has been defaulting on STAC's advertising fees.

According to Yu, PPG's predecessor Shanghai Peiji E-commerce Company signed a RMB1 million contract with STAC in December 2005 to place PPG's ad on Shanghai Television and Oriental Television between December 3 and 30, 2005. However, Peiji only paid RMB70,000 to STAC after the advertisement was fulfilled. Yu said though STAC has raised several lawsuits against Peiji since then, the latter still has not paid the remaining RMB930,000.

Yu said they would take further actions against PPG after the Spring Festival when the lawsuit against PPG filed by another two advertisement companies of Shanghai Kuangshi Advertisement Company and Shanghai Yuantai Advertisement Company would also be heard. Apart from disputes with advertising companies, PPG is said to be involved in lawsuits with its suppliers. PPG owes goods payment to two suppliers — Jiangsu Hubao Clothing Company and Zhuoyue Textile.

Despite the debt dispute, PPG released a financial report on January 17, which shows that the company's sales in 2007 increased by over ten times compared with the same period of 2006 and its single day selling in the last quarter of 2007 even reached 30,000 items.

Peiji is a company established in August 2002 with Li Jiguang and David Lee as two main shareholders. PPG was registered as a foreign-funded company in September 2006 with David Lee as the founder.