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Bodum Sues J.C. Penney Over ‘Shop-In-Shop’ Agreement

Bodum Group has filed suit against J.C. Penney Inc. Co., for breach of contract, according to a Reuter’s report. In the lawsuit, which was filed August 30, 2013, Bodum has alleged that the retailer did not deliver on its shop-in-shop concept for the housewares company.

Bodum and J.C. Penney had reached a deal in November 2012 to have Bodum housewares products, such as high-end French presses, and Ordning & Reda office and stationery products prominently featured in modern, chic shops within its stores. The shop concept was expected to launch in March 2013.

However, according to the lawsuit, filed in New York State Supreme Court, Bodum said J.C. Penney had missed the March 2013 date to launch the shops and installed boutiques at fewer stores than initially agreed upon. Bodum also accused J.C. Penney of “haphazardly” placing its merchandise throughout the stores.

According to the lawsuit, Bodum saw the J.C. Penney deal as a way to raise its visibility for the Bodum and new Ordning & Reda brands, and said it had spent $2.8 million in preparation for the launch.

“Now, with JCP’s inept and failed launched of this brand, it will be impossible to successfully relaunch the brand [Ordning & Reda] for a significant period of time,” Bodum USA said in the complaint.

At presstime, J.C. Penney representatives had not commented on the lawsuit.