Just Group have recently launched legal action against their recently departed CFO, Nicole Peck, after she was poached by rival, Cotton On Group. Just Group is seeking an injunction which will see Ms Peck unable to work for its competitor for a period of 24 months.
Recent article sourced from The Age:
Billionaire rag-trader Solomon Lew’s Just Group – which owns Just Jeans, Portmans and beloved schoolkids stationery supplier Smiggle – has launched legal action against its recently departed chief financial officer Nicole Peck after she was hired by its arch-rival Cotton On.
The legal action has pitted the two retailers against each other in the Supreme Court of Victoria and again highlighted the fiercely competitive market for top executives in the retail sector.
Indeed in just 2011, Just Group, which is majority owned by listed group Premier Investments, hired ex-David Jones chief executive Mark McInnes who then embarked on a hiring spree that is said to have added to the company’s current success.
Ms Peck joined Just Group in January from retail chain Target where she was also the chief financial officer, a hire that ruffled feathers at the Wesfarmers’ owned chain.
In May, Ms Peck resigned from Just Group to become Cotton On’s CFO, however the court action has temporarily waylaid Ms Peck’s and Cotton On’s plans. In the interim Just Group’s deputy CFO John Bryce has been named acting CFO.
Just Group is seeking an injunction restraining its former second most senior manager Ms Peck from working for its competitor for 24 months.
The company has also argued Ms Peck “had access to highly confidential and commercially sensitive information of the plaintiff”.
“Access was in the period January to May 2016, and is therefore very ‘current’,” according to court documents.
The case recently came to light this month through a pre-trial skirmish over Ms Peck’s choice of legal representation.
Ms Peck is being represented by lawyers from Ashurst – a firm Just Group believed was also acting for Cotton On.
However, it was later found by Justice Andrew Keogh that Ashurst was not currently working for Cotton On.
Just Group also raised questions about whether Cotton On was secretly funding Ms Peck’s defence of the matter.
Lawyers for Ms Peck declined to clarify whether they were funding her defence or indemnifying Ms Peck against any costs arising from the case, according to Justice Keogh.
Ms Peck is defending the action, arguing her contract at the time of her resignation did not include a restraint.
She also argues that a restraint “in the circumstances excessive and unreasonable and unenforceable at law”.
Justice Keogh also said Ms Peck had affirmed to Just Group “that she would keep confidential any of the plaintiff’s confidential information disseminated to her during her employment”.
It’s not the first time this year staff movements have led Just Group to court.
In February, Just Group dropped its case against Best ‘n’ Less and its national head of retail sales Joseph van Dyk, the former sales manager of Just Jeans, over the alleged poaching of the Just Jeans store manager from its Mildura outlet. It was later determined the store manager had applied for the job via an ad on Seek.com.au.
A trial date is set for next month. Just Group and Ms Peck’s legal team declined to comment.
Cotton On’s current chief financial officer Michael Hardwick said: “Our interest in Ms Peck relates solely to her 25 years of retail experience and we have no interest in information specific to The Just Group.”
Source The Age: http://www.theage.com.au/business/retail/lews-just-group-suing-recently-departed-cfo-after-cotton-on-poaching-20160706-gpzq5l.html
Comment