A private label manufacturer has filed a lawsuit accusing Saks Inc. of refusing to accept a confirmed order.
This story first appeared in the November 26, 2008 issue of WWD. Subscribe Today.
According to a complaint filed in U.S. District Court for the District of South Carolina in Charleston on Friday, Saks, in October 2007, opened an account with Berle Manufacturing Co. Inc. to produce and label clothing. Berle, a Charleston-based maker of men’s dress and casual slacks, said it made $117,920 worth of product for Saks under the arrangement, but that when it came time for delivery, the retailer refused to take the merchandise.
In its complaint, Berle alleged that Saks is in default on the payments and is seeking to recover the sum, as well as pre- and postjudgment interest. The vendor filed suit in South Carolina State Court on Oct. 27.
Saks filed an answer to Berle’s complaint on Friday, concurrent with the case’s move to federal court. Among other defenses, Saks’ attorney questioned that an agreement existed as Berle described it and said his client rightfully rejected the clothes under the Uniform Commercial Code.
A spokeswoman for the retailer said the company had no additional comment.