Sephora wants to back out of JCPenney stores
The makeup retailer wants to shorten its long-time contract with JCPenny.
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Sephora, which is JCPenney's only make-up retailer, threatened to pull its cosmetics counters out of the department store in an attempt to end its longtime contract with the retailer in the midst of the coronavirus pandemic.
The Plano, Texas-based department store is seeking a court order to thwart the LVMH-owned beauty chain from closing its 600 shops inside nationwide retail stores as JC Penny slowly starts to reopen select stores after COVID-19 related shutdowns in mid-March.
JCPenney filed a temporary restraining order to prevent Sephora from pulling out of its stores.
"We have been in active discussions with JCPenney regarding our agreement for some time. Although this is a sudden and unfortunate development, we are hopeful of continuing discussions and reaching an amicable agreement for both Sephora and JCPenney," a spokesperson for Sephora told Fox Business in an email.
Sephora said it plans to reopen its standalone stores at the end of May.
"JCPenney filed a temporary restraining order so Sephora could not prevent JCPenney from reopening Sephora inside JCPenney locations," Brooke Buchanan, a spokeswoman for JCPenney, told FOX Business on Monday.
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The makeup giant's threat of an early exit from the department store could affect JC Penny’s revenue, considering Sephora is its sole cosmetics partner. Sephora reportedly wants to end the contract in April 2021, according to the Dallas Morning News. The contract has been in place since 2009.
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