by Christopher Freeburn | September 10, 2013 10:57 am
Struggling retail chain JCPenney (JCP) is facing a lawsuit over its alleged failure to create a in-store boutique for a high-end coffee-press manufacturer.
Bodum Group has filed suit against the discount department store operator claiming that JCPenney reneged on a November 2012 contract to launch trendy shops for Bodum products within its stores and has displayed its items “haphazardly,” Reuters notes.
According to Bodum, JCPenney was supposed to launch the new shops within its stores by March 2013, but failed to do so. The company says it spent $2.8 million in advance of the shops’ expected launch. The in-store boutiques would have featured Bodum-branded household items as well as office products from Ordning & Reda.
JCPenney has essentially abandoned plans to open mini shops inside its stores. The idea was part of former CEO Ron Johnson’s plan to revive the company. However, Johnson was ousted earlier this year after a series of disastrous fiscal quarters.
The chain has since jettisoned Johnson’s “no-sales” strategy and is begging consumers to return to its stores.
Shares of JCPenney dipped fractionally in Tuesday morning trading.
Source URL: http://investorplace.com/2013/09/coffee-press-maker-sues-jcpenney-over-shop-in-shop-fail/
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