Nike to Sue Retailer Over Alleged Fakes

Nike Inc. said it plans to take British retailer J. Sainsbury to court for allegedly selling counterfeit polo shirts. Nike said it would seek an injunction in London’s High Court to force Sainsbury to withdraw thousands of shirts from the shelves of its Savacentre superstores. Beaverton, Ore.-based Nike alleges the shirts are counterfeits imported from the Philippines. Sainsbury rejected an ultimatum from Nike to pull the goods from its stores, saying it had gone to great lengths to verify the source of its supply. Nike’s action is the latest salvo in a battle between British retailers and luxury sportswear producers, which have refused to supply them with products to sell at discounted prices. On the NYSE, Nike shares fell $1.94 to close at $37.38.