Draft Public Statement

For publication on ArtToy Emporium’s website and social channels

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A Message to Our Community: Taking Responsibility, Resolving the Consignment Matter, and Rebuilding Trust

To our collectors, creators, franchise partners, customers, and the wider art-toy community:

Over the past several weeks, we have heard your concerns, your anger, and your disappointment. We have listened. More importantly, we have learned. We did not handle this situation the way a company that serves passionate collectors should. We allowed a dispute over contracts, ownership changes, and valuations to overshadow what mattered most: a customer trusted us with something valuable, and we failed to treat that trust with the seriousness it deserved.

We are sorry.

To the Collector Who Entrusted His Collection to Us

A collector consigned a rare and deeply personal Labubu collection to one of our locations. During a franchise ownership transition, that inventory became unaccounted for. Our initial public response focused too heavily on technical arguments about contract status and valuation. That approach was dismissive, and it did not reflect the values we claim to stand for.

We now recognize that a change in store ownership does not erase our responsibility to the people who place their trust in us. A consignment is not merely a contract clause. It is a collector’s property, time, money, and passion.

We have reached an amicable financial resolution with the collector. While the terms of that resolution remain private, our apology is public. We are sorry for the stress this situation caused, and we are sorry that our earlier response made him feel unheard. We will not continue to relitigate this matter publicly. We have chosen resolution over conflict because doing right by our community is more important than winning an argument.

To Vigilante Vince and the Creator Community

We also want to address the actions we took against Vigilante Vince.

We filed civil claims and supported trespassing-related complaints after he attempted to cover this story. In doing so, we escalated a situation that should have been met with transparency, not confrontation. That was a mistake.

Effective immediately, we are withdrawing all civil claims and complaints against Vigilante Vince. We do not believe that pursuing legal action against a creator for reporting on a matter of public concern is consistent with accountability, openness, or good faith.

We respect the role creators, consumer advocates, and independent journalists play in holding companies accountable. We may not agree with every conclusion drawn in every video, but we recognize that the concerns raised came from a place of genuine care for collectors and fairness. Our response should have been better.

This withdrawal is intended as a gesture of goodwill and as a clear signal that ArtToy Emporium wants to move forward with transparency, not retaliation.

To the Collector Community: We Are Changing How Consignments Are Protected

We understand that statements are not enough. Trust in the collector community is earned through action. The events surrounding this franchise transition exposed gaps in how consigned inventory can be tracked, secured, and protected during ownership changes. We are taking immediate steps to address those gaps.

Beginning now, ArtToy Emporium is implementing a new Consignment Protection Standard across corporate-operated locations, with required adoption by franchised locations as part of updated franchise operating standards.

These changes include:

1. A Centralized Consignment Registry

Every consigned item will be entered into a centralized digital inventory system. The registry will include:

• Item description
• Photographs
• Condition report
• Series, edition, or identifying details where available
• Consignor agreement terms
• Custody location
• Chain-of-custody records

This system is designed to ensure that consigned items can be identified and accounted for even if store ownership changes.

2. Mandatory Chain-of-Custody Documentation

No consigned inventory may be moved, transferred, stored offsite, or removed from a location without documented authorization. Any movement of consigned goods must include:

• Time-stamped records
• Names of authorized personnel
• Carrier or transport details
• Reason for transfer
• Destination location
• Video or photographic verification where practicable

This policy is intended to prevent ambiguity during franchise transitions and eliminate undocumented after-hours inventory movements.

3. Franchise Transition Inventory Freeze and Audit

Whenever a franchise location changes ownership, terminates operations, or undergoes a management transfer, consigned inventory will be subject to an immediate inventory freeze and reconciliation process.

Before possession is transferred to a new operator, an inventory audit must be conducted. Consigned items must be verified, secured, and documented. If reconciliation cannot be completed, the inventory will be moved only under controlled, documented, and insured conditions.

4. Corporate-Backed Consignment Assurance Process

We are establishing a formal claims and assurance process for consignors affected by franchise transitions. If consigned inventory becomes lost or unaccounted for during a covered ownership transfer, the consignor will have access to a structured resolution process, including:

• Submission of a consignment claim
• Review of inventory records
• Independent appraisal where necessary
• Good-faith resolution based on documented value and circumstances

We will no longer allow consignors to be caught between corporate and franchise disputes.

5. Direct Notice to Consignors During Ownership Changes

Consignors with active agreements at locations undergoing ownership changes will receive direct notice from ArtToy Emporium. That notice will explain:

• The status of their consigned items
• The expected transition timeline
• The process for retrieval, continued consignment, or resolution
• A direct corporate contact for questions

Collectors should not have to discover that their property is at risk by visiting a store or seeing news online.

6. Updated Franchise Agreements and Accountability Requirements

We are revising franchise agreements to strengthen expectations around consignment handling, inventory security, and ownership transitions. Franchise operators will be required to maintain proper custody records and cooperate with corporate consignment audits.

Where a franchise transition creates risk to consigned property, ArtToy Emporium will take a more active role in ensuring that collectors are not left without recourse.

7. Independent Review and Ongoing Oversight

We have begun an internal review of our franchise transition controls and consignment handling procedures. We will also engage independent advisors to assess our new policies and recommend further improvements.

We will provide updates on the implementation of these measures through our website and collector communications.

A New Standard for How We Respond to Public Concerns

This experience has also shown us that we need to change how we handle disputes involving creators, journalists, and community advocates.

We are adopting clearer internal guidelines governing legal escalation in public-facing disputes. These guidelines will emphasize:

• De-escalation
• Respect for lawful reporting
• Transparent communication
• Avoiding retaliatory or disproportionate legal responses
• Direct engagement with concerns raised by customers and creators

We do not want ArtToy Emporium to be known for silencing criticism. We want to be known for listening, correcting course, and earning back trust.

Moving Forward

We know that many collectors feel betrayed. We understand why. The art-toy community is built on passion, trust, rarity, and relationships. When a collector hands over a prized piece, they are not just handing over inventory. They are trusting us to respect what that piece represents.

We failed to uphold that responsibility in this case. We also failed in how we responded afterward.

We are not asking for immediate forgiveness. We are committing to better actions: resolving the collector’s matter, withdrawing our legal actions against Vigilante Vince, improving consignment protections, and communicating more honestly with the community we serve.

To the collector: we are sorry.
To Vigilante Vince: we are withdrawing our actions and choosing a different path.
To the collector community: we are changing our practices so that this kind of situation is far less likely to happen again.

Trust is fragile. Once damaged, it can only be rebuilt through consistent behavior. We intend to do the work.

Sincerely,
The Leadership Team
ArtToy Emporium

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Suggested Short Social Version

For X / Instagram / TikTok / Facebook caption with link to full statement

We got it wrong.

We failed to treat a collector’s consignment with the care it deserved, and our response made things worse. We have reached a financial resolution with the collector, withdrawn all civil claims and complaints against Vigilante Vince, and committed to new consignment protections designed to prevent inventory from being lost or mishandled during franchise transitions.

We are sorry. We are changing our practices. Full statement: [LINK]

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Optional Pinned Follow-Up Post

For community platforms

To the Labubu and art-toy community:

We are implementing a new Consignment Protection Standard, including:

• Centralized consignment inventory registry
• Mandatory chain-of-custody records
• Inventory audits during franchise ownership changes
• Direct notice to consignors during transitions
• A corporate-backed claims and assurance process
• Stronger franchise accountability requirements

We know trust must be earned. We are committed to doing better.