Matalan and Primark in 'chav' dispute

According to the Sunday Times, the battle to dress "chav Britain" has moved from the high street to the High Court in a bitter legal dispute over the right to sell "hoodies". Primark, the budget clothing retailer, has launched a legal action against its arch-rival, Matalan, which it accuses of confusing customers by illicitly copying its products.At the centre of the dispute is a popular range of hoodies for boys launched by Matalan and emblazoned with the words "rebel attitude". Primark claims it has the sole rights to sell clothing to children using the word "rebel" and already uses the term to market its boys' range.

According to papers filed at the High Court earlier this month, Primark is demanding that Matalan destroy its "rebel" hoodies immediately and pay it substantial damages.However, Matalan is refusing to withdraw the items, which cost only £4 and are being heavily promoted.A source with knowledge of the case said: "Legally it may be an interesting issue, but commercially it seems a bit silly. It's just the word 'rebel' on T-shirts. It does not seem to be an attempt to copycat Primark."

The claim could not have come at a worse time for Matalan, which has suffered a sharp dive in profits and is in the midst of a takeover battle. The company recently hired Melanie Sykes, the television presenter, and Gavin Henson, the Welsh rugby international, to spearhead an advertising campaign to revive its fortunes.The two retailers dominate the booming super-budget fashion market, which has hit the profits of more established high-street names such as Marks & Spencer, Gap and Next and contributed to the collapse of Kookai and Morgan this year.They charge as little as £2 for a T-shirt or £6 for ballet pumps, and have won plaudits in the fashion press.

Primark's rise has been spectacular. A report by Verdict Research says Primark is now the country's fourth-largest women's clothing retailer, having overtaken Asda, Debenhams and New Look. Only Marks & Spencer, Arcadia and Next sell more. Primark recently reported a 20% rise in profits over the past six months.This summer Primark sold more than 90,000 cotton polka-dot dresses at £10 each. Last year, a £12 military jacket that was compared to a coat by New York fashion designer Marc Jacobs clocked up 250,000 sales after it was featured in Vogue.

However, the retailer is more accustomed to defending legal claims from fashion rivals than issuing them. In May 2004 Monsoon settled out of court for £23,000 with Primark, but then filed another claim the following April over six items of women's and children's clothes, which Primark later withdrew.H&M also filed a claim against Primark for "design right infringement" and this again was settled out of court.A source close to the retailer said: "It just shows how aggressive the market is becoming but most of these things get settled out of court."

The hoodie is a contentious item in the urban wardrobe that has been vilified by the government. Tony Blair backed a ban on hoodies in Bluewater, one of Britain's largest shopping centres, in May last year, while John Prescott said he found it intimidating to be confronted by 10 teenage "fellas with hoods on".In the same month, Dale Carroll, 16, from Manchester was given an Asbo banning him from wearing hoodies for five years; and the following October, Bedfordshire police announced that they would stop and search every youngster wearing a hoodie in Luton.A spokesman for Matalan said it was aware of the issue but was unable to comment further. Primark would not comment.