Tuesday, June 23, 2009

Playboy Sues eCommerce Provider

Crain's Chicago Business reports that Playboy.com Inc. has sued the company that handles its eCommerce, claiming the firm is attempting to void its contract instead of admitting it can't deliver promised results.

"The eCommerce division of Chicago-based Playboy Enterprises Inc. filed the lawsuit Wednesday against eFashion Solutions LLC of Secaucus, N.J., for breach of contract. Playboy wants a federal judge to order eFashion to pay damages and honor its business agreement until Playboy can find a suitable replacement," the paper reported.

Losing eFashion as manager of Playboy’s Bunny Shop “will irreparably harm Playboy, forcing Playboy to shut down its e-commerce and catalog business,” the suit said.

According to the suit, eFashion wants to end the business relationship on July 1, claiming that Playboy breached the terms of its contract.

"EFashion CEO Ed Foy said his company couldn’t operate under the financial terms of its agreement, the suit said. Playboy claims in October it signed a modified contract with eFashion that included concessions including slashing the first-year minimum royalty payment to $750,000 from the previously agreed $1.5 million. Playboy claims that eFashion has yet to deliver the first-quarter payment of that royalty."

Playboy’s suit did not detail why eFashion claimed Playboy was in breach of contract.

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