Solomon Lew's Just Group loses appeal to stop former-CFO joining Cotton On

By

Benjamin Fitzgerald

Published
Jan 10, 2017

Solomon Lew's Just Group has lost an appeal to prohibit the retail firm's former-CFO from joining rival Australian outfit, Cotton On Group.

Following a ruling by the Victorian Court of Appeal, Nicole Peck is now permitted to commence her appointment at Cotton On after being stopped from taking up the position mid-way through this year by Just Group's legal action, reported the Sydney Morning Herald.

The court said the restraint clauses in Peck's contract were too broad and loosely written in order to be legally enforced.

Peck resigned to take up the role of chief financial officer at Cotton On five months after joining Just Group.

As part of Peck's contract, Just Group had included a list of 50 prohibited companies to work for, if and when, she left her role at the organisation.

The court said the restraint clause listed too many companies and limited Peck from working for a company in a position even when the information she acquired during her employment with Just Group would be irrelevant.

Just Group, owned by Solomon Lew's Premier Investments, operates fashion brands Just Jeans and Portmans, and stationery supplier Smiggle.

Likewise, Cotton On Group owns Typo, a stationary retailer, as well as its namesake Cotton On brand and teen fashion retailer, Supre.

The news comes as both Typo and Smiggle are vying for the UK market, with store debuts in England in the last six months.