It wasn’t long ago that we blogged about Macy’s ongoing lawsuit against J.C. Penney over the store’s contract with Martha Stewart Living Omnimedia. However, J.C. Penney is being sued again, this time by a company whose products are sold in J.C. Penney.
Bodum Group, an upscale coffee-press maker is suing J.C. Penney for breach of contract. The company had reached an agreement in November of 2012 to have its product featured in a boutique like shop within J.C. Penney. This was all part of J.C. Penney’s plan to reinvent itself by creating many shops within its shop. The shops were to highlight collections of products like the Bodum coffee-press makers. However, according to the lawsuit J.C. Penney missed the launch date for the boutiques and did not install nearly as many they had agreed to. In addition to the lack of boutiques, the lawsuit accuses J.C. Penney of scattering the company’s products around its store with no strategic plan towards targeting the consumer.
J. C. Penny suffered a 25% sales decrease last year, and in an attempt to counter some of the loss is selling mid-market products at very deep discounts.
While Bodum Group estimated spending $2.8 million preparing to launch the brand at J.C. Penney, they have yet to estimate the damages caused by J.C. Penney’s alleged failure. However, according to the company, the damages will extend into the future as they will have to wait for a significant portion of time before they can safely re-launch the product.