JCPenney and Sephora settle dispute over in-house boutiques

J. C. Penney Company, Inc. and Sephora USA, Inc. have reaffirmed their long-standing partnership to operate Sephora inside JCPenney. JCPenney said in a statement that both the companies worked to resolve outstanding legal matters and have agreed to mutually beneficial revisions to their joint enterprise operating agreement. About 650 in-store Sephora beauty boutiques were closed because of the coronavirus pandemic.

According to a Bloomberg report, J.C. Penney filed a lawsuit in Texas state court last month when Sephora said it wanted to end their 16-year relationship by April 2021, which is earlier than the May 2022 exit J.C. Penney offered because the latter furloughed its workers in the boutiques. A state judge issued an order temporarily blocking the exit, and Sephora shifted the dispute to federal court, where it sought to overturn the order.

Introduced in 2006, the company added that SiJCP is an exclusive beauty experience in select JCPenney stores, offering a curated selection of leading makeup, fragrances, skin and haircare brands.

The company further said that the companies are committed to continuing to expand and innovate SiJCP’s offerings in order to deliver the beauty experience customers expect in the future.

Picture:JCPenney newsroom