[neallewis]

AH I see, they are looking to build their own channel or appoint a new (maybe bigger) distributor, given the UK market for the team C product after the hard work from the SMD team to create and build it.

The "right" thing to do would be to take the staff into the new organisation (should they want to go). There is a process for this: tupe

If, lets say a larger kit shifter has decided they want the piece of the market and done a deal with team C then of course, the loyal customers of SMD should boycott the new one. On the other hand if customers have invested, then its good to know they will still be able to get their parts, however it would surely create a bad feeling for those racers who want to remain loyal to their local shop. I'm sure SMD will get over the bump, and come back stronger with their other, and future brands.