The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Alex and Ani Files a Counterclaim in Sterling Suit
The bracelet company has come back with its own breach of contract allegations.
Akron, Ohio-- Alex and Ani has filed a counterclaim in response to the breach of contract lawsuit Sterling Jewelers filed against it last month alleging that Sterling is the one that violated their agreement.
Documents filed in federal court in Ohio show that both parties seem to agree on a couple of key points in the case: that Sterling would sell Alex & Ani at approximately 100 Jared the Galleria Jewelry stores beginning in August 2015, but not at any other Sterling-owned stores, including its outlet stores.
The Sterling suit alleges that Jared had difficulty selling the Alex and Ani product, and the aforementioned selling restrictions kept Sterling from being able to make any profit on items that wouldn’t sell.
Sterling said that after reaching an agreement in 2016 with Alex and Ani for the latter to buy back $3 million worth of product, it never received the money, despite sending a first shipment of product valued at $900,000.
At that point, Sterling terminated its agreement with Alex and Ani, and it admits to selling the remaining stock at Kay Jewelers, Kay Jewelers Outlet locations, and on Kay.Com, KayOutlet.com and Jared.com.
The Sterling suit asks for about $2.6 million in damages, plus interest and attorneys’ fees.
Alex and Ani’s counterclaim, filed against Sterling parent company Signet Jewelers Ltd. on Feb. 5 in U.S. District Court for the Northern District of Ohio, states that it limited where and how Alex and Ani could be sold through Sterling because it “is strategic and thoughtful with regard to where and how its products are sold, in order to maintain the integrity of the brand.”
On Aug. 26, it learned that Sterling was selling 459 of its bangle styles on Jared.com and on Aug. 30, Sterling terminated their agreements.
“It is apparent from the timing that Sterling terminated the agreements in an attempt to avoid the consequences of breach of the agreements,” the countersuit states.
Alex and Ani is alleging that Sterling’s conduct “was in breach of the contractual agreements between them” and is seeking to block any further sales through “unauthorized channels,” a dismissal of all claims against it and damages to be determined at trial, in addition to attorney’s fees.
Signet Jewelers affirmed it does not comment on ongoing litigation and a request for comment sent to Alex and Ani’s attorney, Mark Geragos, was not returned by press time.
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.