Myer battles to stop designer defecting
Myer started legal action against Ellery last week, claiming she breached an exclusivity contract and failed to supply Myer with her autumn and winter collection. The case could throw open the doors to how the rival stores fight for and keep exclusive fashion deals.
The parties are rushing to settle the matter before David Jones launches its new collection on February 4 and will return to court next week after Justice Michael Sifris, in the Supreme Court of Victoria, agreed to hear the matter urgently.
Myer alleges Ellery breached a supply contract and exclusivity deal by defecting to David Jones with her Ellery and L'America branded clothing. It is seeking damages and an injunction restraining her from selling goods to other department stores, which would effectively ban her from participating in David Jones' season launch.
Myer has not decided whether to feature Ellery in its winter collection because, "we can only continue our commitment to Ellery when that . . . is reciprocated", spokeswoman Jo Lynch said.
Myer signed a supply contract with Ellery's label Ellery Land in August 2011 before upgrading it to an exclusivity contract preventing her from supplying any other large chain stores until September 2014, according to documents lodged with the Supreme Court.
Lawyer for Ellery, Charles Shaw, said the contract with Myer was excessively restrictive because it "does not oblige Myer to buy anything from the defendant" but prevented his client from supplying David Jones.
Lawyer for Myer, Bart Carew, revealed the retailer offered Ellery at least $1.5 million in sales in December in an effort to keep the contract.
Frequently Asked Questions about this Article…
Myer has taken legal action alleging designer Kimberly Ellery breached a supply and exclusivity contract by supplying her Ellery and L'America branded clothing to rival department store David Jones. Myer is seeking damages and an injunction to stop Ellery selling to other large chain stores.
The dispute involves Myer, designer Kimberly Ellery and her label Ellery Land, and rival department store David Jones. The case is being heard urgently in the Supreme Court of Victoria by Justice Michael Sifris; lawyers representing the parties include Charles Shaw for Ellery and Bart Carew for Myer.
Myer signed a supply contract with Ellery Land in August 2011 and later upgraded it to an exclusivity contract that, according to court documents, prevented Ellery from supplying any other large chain stores until September 2014.
Ellery's lawyer, Charles Shaw, says the contract is excessively restrictive because it reportedly does not oblige Myer to buy anything from Ellery but still prevents her from supplying David Jones, and that point is central to her defence.
Myer is seeking damages and an injunction that would restrain Ellery from selling goods to other department stores — a move that could effectively block her participation in David Jones' upcoming season launch.
The matter was fast-tracked to be heard urgently in the Supreme Court of Victoria. The parties are pushing to settle before David Jones launches its new collection on February 4, and the case was set to return to court the following week.
This case could influence how department stores negotiate and enforce exclusive designer deals. For investors, the outcome may affect retailers' merchandising strategies, potential sales from exclusive labels, and how rivals compete for fashion partnerships.
Yes — Myer's lawyer, Bart Carew, revealed the retailer offered Ellery at least $1.5 million in sales in December in an effort to maintain the contract and keep the label exclusive to Myer.
Call 1300 880 160
Start a chat
Schedule a call
