JCPenney, Sephora Resolve Dispute

Retail has always been extremely tough and the limitations of our current times haven’t helped very much. But this week brought a little bit of good news for two retailers, J.C. Penny and Sephora, who are moving toward a new joint enterprise operating agreement.  

The two companies have resolved their legal dispute and reaffirmed their partnership to continue operating Sephora boutiques inside JCPenney stores.

The amendments are consistent with plans to continue to expand Sephora in JCPenney and “deliver the beauty experience customers expect in the future,” the company said.

Plano, Texas-based Penney filed a restraining order against Sephora on April 27 alleging that the beauty company had threatened to not reopen its store-in-store boutiques or restock products if JCP did not agree to ending its current four-year contract early, The Dallas Morning News reported.

JCP said in the filing that the loss of Sephora as a partner would cause “irreparable injury.” Sephora pushed back, filing an emergency motion to dissolve the order, which it said was based on a “fanciful, one-sided narrative.”

Sephora said that “acting by stealth,” Penney “manufactured a false impression of Sephora as supposedly attempting to use minor grievances to suddenly pull from JCP the ability to sell any beauty products,” and that Sephora was not given the opportunity to be heard. JCPenney is reportedly considering filing bankruptcy as a way to rework its “unsustainable” finances and save money on looming debt payments.

Just like this one, legal disputes are EVERYWHERE. And when they affect YOU and YOUR business including contract issues, landlord/tenant matters, unlawful tenant complaints, nuisance ADA suits and even collections, call in the good guy business litigator, Dean Sperling, to resolve YOUR matter with YOUR best interests in mind! 

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JCPenney, Sephora resolve legal dispute