People’s Liberation, Inc. Files Suit Against Charlotte Russe Merchandising, Inc. Seeking Over $60 Million in Damages
2009-10-29 14:19:05 -
People’s Liberation, Inc. (OTCBB: PPLB : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Ffin .. ), the designer and distributor of high-end casual apparel under the brand names People’s Liberation®, William Rast® and J. Lindeberg®, today announced that it filed suit in Los Angeles Superior Court against Charlotte Russe Merchandising, Inc. for breach of a written contract and tort recovery seeking over $60 million in compensatory damages and
punitive damages.
The suit alleges that Charlotte Russe approached People’s Liberation in 2008 to exclusively license the People’s Liberation Brand in the United States and all of Central and North America. To induce People’s Liberation to stop providing its premium denim, knit and accessory products to fine department stores such as Nordstrom, Saks Fifth Avenue, and Neiman Marcus, Charlotte Russe executed a multiyear contract in December 2008 that guaranteed minimum purchases of product during the first three contract years of $65 million.
The complaint alleges that Charlotte Russe, without justification or legitimate reason, terminated its contract with People’s Liberation within the first year of the relationship. This termination occurred shortly after Charlotte Russe was purchased by the private equity firm of Advent CR Holdings, Inc. The complaint further alleges that Advent CR Holdings, Inc., its parent Advent International Corporation, and Charlotte Russe's management wanted to take the company in a new direction and, in doing so, they were prepared to ignore prior contractual obligations.
“Throughout 2009, we have provided over $6 million in approved product shipments and services to Charlotte Russe without any objections and have fully performed under the agreement,” said Colin Dyne, People’s Liberation’s CEO. “Without any prior warning or opportunity to cure as required under our agreement with Charlotte Russe, we received a termination letter. The contract is not terminated, and Charlotte Russe will pay us every penny it is contractually obligated to pay.”
ABOUT PEOPLE’S LIBERATION, INC.
Los Angeles-based People’s Liberation markets and sells high-end casual apparel under the brand names “People’s Liberation,” “William Rast” and, in the United States, “J. Lindeberg.” The People’s Liberation apparel line is distributed exclusively through Charlotte Russe retail stores in North and Central America.
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include management’s belief that it has provided approved product shipments throughout the year without any objections from Charlotte Russe, that People’s Liberation has fully performed under its agreement with Charlotte Russe, and that the agreement has not been terminated and that People’s Liberation is entitled to all amounts due it by Charlotte Russe thereunder. These matters ultimately will be decided in litigation, the outcome of which cannot be known at this time. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
People’s LiberationDarryn Barber, President and CFO213-745-2123orAddo
Communications, Inc.IR ContactPatricia Dolmatsky/Andrew
Greenebaum310-829-5400
