Tiffany & Co. Sues to Keep H&M From Moving In Next Door
Tiffany & Co. doesn't want H&M as a neighbor at the Westfield Century City shopping center in Los Angeles. The L.A. Timesreports that Tiffany is arguing that its contract with Westfield forbids retailers that are not high-end retailers. H&M is considered a fast-fashion retailer.
Tiffany said its contract with Westfield forbids retailers "whose merchandise and/or price points are not considered to be luxury, upscale or better by conventional retail industry standards" to use or lease certain spaces within, fronting or adjacent to the Tiffany store.
Although H&M is a popular, fashion-forward retailer for young adults, it is also decidedly low-price. In the lawsuit against the shopping center and parent company Westfield Group, Tiffany said: "H&M is not a luxury or upscale retailer. H&M is at best characterized as a 'popular-price' mass merchandise clothing retailer."
"The location of the H&M store will cause irreparable injury to Tiffany's business reputation as a luxury retailer, a reputation that Tiffany has enjoyed and worked hard to maintain for more than a century and a half," the lawsuit said.
Landlords likely have more vacancies than usual because of the recession but they are still bound by their contracts. Westfield Century City bills itself as the "finest open-air shopping destination in Los Angeles at Westfield Century City, where luxury is the star attraction" on its website.
