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A little courtroom drama flared up today during the trial between Macy's (M +1.8%) and J.C....

A little courtroom drama flared up today during the trial between Macy's (M +1.8%) and J.C. Penney (JCP +2.2%) with accusations leveled at JCP that it's selling products on its website in breach of an agreement to stop showcasing certain categories. The judge in the case will rule on the issue tomorrow. The bigger issue: J.C. Penney needs a win or a settlement in the case to avoid losses on inventory and a gaping hole in the retailer's line of home goods.
Comments (4)
  • GioTrader13
    , contributor
    Comments (52) | Send Message
     
    "Losses on inventory and a gaping hole in the retailer's line of home goods." How do you figure JCP will lose money on inventory if the judge rules Macy's has exclusive rights on MSO merchandise? Wouldn't the merchandise sale to JCP be a breach of contract and therefore illegal for MSO? as far as a "gaping hole" aren't you being a little too dramatic... I read this morning that JCP has a contingency plan in place where they will look to Asian suppliers to produce an emergency line of private label bath products, bed linens and kitchenware to fill the void and production could take 75 to 90 days.
    8 Apr 2013, 02:33 PM Reply Like
  • Dcharlto
    , contributor
    Comment (1) | Send Message
     
    The inventory issue is caused because jcp has already received the merchandise as it sits in their stockrooms. Should they lose case this inventory can not be sold and will have to be liquidated.
    8 Apr 2013, 10:18 PM Reply Like
  • JCPonderings.weebly.com
    , contributor
    Comments (45) | Send Message
     
    Are they saying JCP isn't allowed to showcase any home items because people might confuse it with Martha Stewart? If so that's ridiculous.
    8 Apr 2013, 02:37 PM Reply Like
  • Dreamworld
    , contributor
    Comments (5) | Send Message
     
    JCP's best option is to sell the existing Martha Stewart merchandise without the label at lower prices. The other options assuming that the judge does not rule in favor of JCP are just too costly on markdowns to liquidate and loss of sales in the space for at least 4 months considering transportation
    8 Apr 2013, 10:20 PM Reply Like
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