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No high fives in Myer label spat CBD Ben Butler

Myer boss Bernie Brookes (pictured) has admitted there will be "a degree of awkwardness" in dealing with designer Kym Ellery if the department store succeeds in a legal bid to force her back into its stable.
By · 7 Mar 2013
By ·
7 Mar 2013
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Myer boss Bernie Brookes (pictured) has admitted there will be "a degree of awkwardness" in dealing with designer Kym Ellery if the department store succeeds in a legal bid to force her back into its stable.

But he seems in no mood to back down from the courtroom stoush, sparked when the 29-year-old designer allegedly broke her exclusivity deal with Myer by signing a deal with rival David Jones.

Ellery's glamorous frocks were a notable absence as Myer launched its autumn racewear range in front of a roomful of lunching ladies at Melbourne's Flemington Racecourse on Wednesday.

Last month, DJ's opened their autumn-winter launch show with one of her designs, draped over the frame of ubermodel Miranda Kerr.

"You've got the same person signing an exclusive deal with two department stores," Brookes said.

"I think people will make their own decision as to the merit of that, but we're going to pursue this," he said.

"We're increasingly confident that we've got the very logical case to say that she has to continue to supply us."

He said the department store had a $1.5 million order with Ellery and wanted the clothes.

"It will be a degree of awkwardness but we funded

Kym to go to [US trade event] G'Day LA, we funded her on catwalks, we funded her on a number of events, and we've invested to build the brand - and she's invested in Myer.

"It's a shame that she came to the extent that she decided to do this, but the relationship ... it's no good saying we'll all be high-fiving at the end of it."

The case is set down for trial in the Victorian Supreme Court next month in front of Justice Michael Sifris.

Gloves are on

Brookes was speaking after a fashion parade that featured models in racing get-ups that featured extravagant hatinators, including one that looked like a radar dish and another that resembled a leather do-rag.

Racing is both one of Brookes' passions and a big part of Myer's promotional strategy.

But the chain has yet to sign a new deal with the Victoria Racing Club to extend its sponsorship of the spring racing carnival, which expired after last year's Melbourne Cup.

"Over the next week, hopefully, we'll be in a situation where we're getting closer and closer to hopefully doing a deal with them [the VRC]," Brookes said. "The VRC have been tremendous in the early discussions. We're working in good faith and fingers crossed that we can do a deal over the next few days or the next week."

It's an important time of year for Myer - Brookes reckons that last year Myer sold 12,000 pairs of cufflinks and 22,000 hats and fascinators in the nine weeks leading up to the carnival.

"Gloves will be in this year - that's my only fashion tip," he said.

Time to re-Joyce

Perhaps Gina Rinehart was stewing after being demoted from the position of the world's richest woman by Forbes magazine. Perhaps she was distracted by the legal stoush with her kids. Whatever the reason, CBD can't help but notice Her Roy Hill Highness didn't put as much of her usual heart and soul into her latest column in Australian Resources & Investment Magazine.

Instead, she devoted it to reprinting most of her "Christmas reading", a piece from The Spectator Australia by Senator Barnaby "Barnyard" Joyce.

The line taken by the National Party senator will seem awfully familiar to anyone who has enjoyed Rinehart's previous efforts.

Come to think of it, has anyone ever seen them in the same room?

Got a tip?

bbutler@fairfaxmedia.com.au
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Frequently Asked Questions about this Article…

The dispute centres on Myer's claim that designer Kym Ellery breached an exclusivity agreement by signing with rival department store David Jones. Myer says it has a roughly $1.5 million order with Ellery and is seeking a court ruling to force her to continue supplying Myer.

The case is set down for trial next month in the Victorian Supreme Court and will be heard by Justice Michael Sifris.

Ellery's frocks were noticeably absent from Myer's autumn racewear launch. The article notes David Jones recently featured one of Ellery's designs at their autumn–winter show, highlighting the competitive and public nature of the dispute.

Bernie Brookes described there being 'a degree of awkwardness' if Myer succeeds in forcing Ellery back into its stable. He emphasised Myer had helped fund Ellery’s exposure — including events like G'Day LA and catwalks — and said the company intends to pursue the legal case because it believes it has a logical claim.

The racing season is an important promotional period for Myer. The article says last year Myer sold about 12,000 pairs of cufflinks and 22,000 hats and fascinators in the nine weeks leading up to the carnival, underscoring why designers and racewear availability matter to the retailer.

Myer's sponsorship deal with the VRC expired after last year's Melbourne Cup and a new deal has not yet been signed. Bernie Brookes said discussions have been positive and he hopes Myer will reach an agreement with the VRC in the next few days or week.

Myer alleges Ellery signed an exclusive deal with David Jones while still under an exclusivity arrangement with Myer. The article notes David Jones opened its autumn–winter launch with one of Ellery's designs, which prompted Myer's legal action.

The article also references commentary about Gina Rinehart republishing a piece by Senator Barnaby Joyce in Australian Resources & Investment Magazine, but the main investor-relevant coverage focuses on Myer, designer Kym Ellery, David Jones and the VRC sponsorship talks.