From redundancy fallouts to burnt suppliers and trade mark disputes, here are three recent cases with important lessons for the sector.
Suppliers fight back
Burned suppliers are continuing to publicly pursue trade creditors, with a successful case mounted by H&B Fashion Distributors. Melbourne fashion retailer Browns was found liable in the sum of $15,804 plus costs in a dispute with the footwear distributor. Key to the case was the pursuit of both Browns and its officers Jenefer and Robert Bikley as guarantors of Browns’ liabilities. This follows the formation of a creditors action group against womenswear designer Michael Lo Sordo, which met with the Australian Fashion Chamber to air woes in December.
Man up to redundancy laws
Embattled menswear chain Man To Man has highlighted the dilemma of store closures, with mixed success over redundancy payouts. According to filings with the Fair Work Commission, the retailer applied to reduce two packages offered to employees following the closure of its Epping store in Melbourne. The Commission ruled in favour of the retailer in the case of a store manager, after finding Man To Man had offered the manager convenient redeployment to a nearby location. It was less successful in a case against a part-time assistant, after it was ruled the redeployment would pose a significant inconvenience to the employee.
Eveden blocks Seafolly bid
Global intimate apparel giant Eveden blocked a trademark registration to rival its Goddess brand. Last month, the Australian Trademarks Office refused to register Seafolly Goddess after ruling the two names were deceptively similar. Eveden demonstrated prior use of the mark in Australia since at least 1998, with 119 stockists nationally. Seafolly first used the trademark in late 2013, selected for one of its swimwear ranges due to its “upmarket” connotation. Hearing officer Nicole Worth ruled in favour of Eveden due to prior use: “I consider it likely that the ordinary person would, at least, entertain a reasonable doubt as to weather lingerie or clothing sold under the Goddess marks originate from the same source as swimwear sold under the Seafolly Goddess trade mark.”
