The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Sterling Suing Alex and Ani for Breach of Contract
Alex and Ani went to Jared, and it didn’t go so well.
Akron, Ohio--Alex and Ani went to Jared and, apparently, it didn’t go so well.
Court papers filed in federal court in Ohio show that Sterling Jewelers Inc., operator of the Jared the Galleria of Jewelry chain, is suing the Providence, Rhode Island-based bangle brand for breach of contract.
Sterling, a wholly owned subsidiary of Signet Jewelers Ltd., and Alex and Ani inked an agreement in August 2015 to do a test run of the brand’s bangles in about 100 Jared stores.
Under
The merchandise didn’t move for Sterling, with the retailer stating in its lawsuit that, “because of the Alex and Ani sales terms, Sterling encountered difficulty selling the products and sales of the products soon began underperforming and continued to underperform into 2016.”
Sterling also stated in the suit that Alex and Ani’s “ongoing concerns about possible negative effect on its brand” prevented it from selling its backlog of inventory to a third-party seller.
Between this and the restrictions on discounting, the retailer was sitting on as much as $6 million of Alex and Ani inventory at one point.
In July 2016, about a year after the initial agreement was reached, Sterling and the bangle brand reached an agreement whereby Alex and Ani would buy back $3 million in merchandise.
The following month, Sterling returned the first shipment of jewelry, worth nearly $900,000. Alex and Ani accepted the shipment, and a company representative told Sterling it would get its money as soon as the shipment was processed.
More than a year later, Sterling still has not received its money for the first shipment, court papers state, nor has Alex and Ani repurchased the rest of the $3 million in merchandise in the agreement.
At the end of August 2016, Sterling terminated its agreement with Alex and Ani, then attempted to “mitigate its damages” by discounting the Alex and Ani jewelry so the retailer could move it, but was hit with multiple cease-and-desist letters by Alex and Ani, which were “wrongfully claiming” Sterling was violating their agreement.
Sterling is seeking about $2.6 million in damages plus interest and attorneys’ fees, as set forth in the 2015 agreement.
Alex and Ani’s attorney, Mark J. Geragos, of Los Angeles law firm Geragos & Geragos, said Wednesday that his client and Sterling Jewelers already have engaged in “very cordial and informal” talks, and he expects the lawsuit will end up getting dismissed quickly.
Sterling Jewelers Inc. originally filed suit against Alex and Ani LLC in the Court of Common Pleas for Summit County, Ohio, the county where Signet is headquartered, in November.
The case was moved to federal court in December at Alex and Ani’s request.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.