Monday, October 19, 2009
Lawsuit of the Weak: It's Been UGGly for Kitson
The trendy hipster boutique Kitson which is favored by the likes of Nicole Richie and other young celebrities is filing a lawsuit against the Deckers which are the makers of the infamous Ugg boots.
According to WWD: On Oct. 8, the trendy retailer filed suit against Deckers in Los Angeles County Superior Court alleging unfair trade practices, negligent misrepresentation, breach of implied covenant of good faith and fair dealing, and intentional interference with prospective economic advantage, among other assertions in relation to the retailer’s sale of Ugg boots.
So basically, Kitson is complaining that Deckers engaged in unfair trade practices by selling their products in bulk at lower prices to retailers such as Macy's, Nordstrom and Bloomingdales in the Los Angeles area while they have had to pay full wholesale prices because they are a boutique.
While Deckers had promised price protection and competitive pricing for Kitson, I think that Kitson's allegations go a little too far. The suit alleges that because of bad publicity from podiatrists saying that the trendy boots are not good for the feet; sales have been slow and that Deckers does not take returns.
If you ask me, Kitson needs to take their issues up with their buyer. Once you sign a contract, you agree to its terms. It seems like Kitson should have known what it was getting itself into when it agreed to carry Deckers product.
I guess we will see how it plays out in court now.
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