Both companies “worked constructively to resolve outstanding legal matters and have agreed to mutually beneficial revisions to their joint enterprise operating agreement,” Penney’s said in a statement.
SiJCP has been an exclusive beauty experience in select J.C. Penney stores since 2006. The shops offer a selection of leading makeup, fragrances, skin and hair care brands. Both companies have worked in tandem to serve their customers and be relevant in an evolving retail landscape, Penney’s said.
“Today’s amendment remains consistent with this shared goal and the companies are committed to continuing to expand and innovate SiJCP’s offerings in order to deliver the beauty experience customers expect in the future,” said the statement.
There are 660 Sephora locations inside J.C. Penney.
The companies did not elaborate on what the revisions were. Neither J.C. Penney nor Sephora officials could be reached for comment Thursday night.
As reported earlier this week, as Penney’s stores reopen during the coronavirus pandemic and the retailer reportedly heads toward a potential bankruptcy filing this month, it has been sparring with Sephora.
Penney’s said it was trying to hold Sephora to their contract as the retailer reopens stores, while the beauty retailer had fired back that the department store chain was trying to “take advantage of an impending bankruptcy.”
“The company filed a temporary restraining order so Sephora could not prevent J.C. Penney from reopening Sephora inside J.C. Penney (SiJCP) locations,” a Penney’s representative said in a statement, earlier this week. “We remain committed to working together to drive sustainable, profitable growth, as SiJCP continues to be a beauty destination that serves millions of customers each year.”
A Sephora representative said earlier this week that the company was trying to work things out with Penney’s amid the COVID-19 crisis and its effect on retail. “It is no secret that J.C. Penney has experienced financial challenges in recent years and it now faces the additional strains affecting all retailers in the wake of COVID-19,” the Sephora representative said.