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Skechers to Countersue Spears on Endorsement

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From Bloomberg News

Skechers U.S.A. Inc., a Manhattan Beach maker of shoes for teenagers and young adults, said Tuesday that it would file a countersuit against a company owned by pop singer Britney Spears, which sued Skechers over an endorsement contract.

Britney Brands Inc.’s suit, filed Monday in U.S. District Court in Los Angeles, claims that Skechers ran ads for Spears’ brand of skates only when the skates she endorses -- and receives royalties for -- weren’t for sale, causing consumers to buy Skechers’ skates instead.

Skechers said Spears is the one who breached the contract by failing to approve designs and manufacturers for skating clothing and other accessories.

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The company claims the singer caused it to miss the fall season for the apparel, costing it millions of dollars in sales.

“She torpedoed the agreement,” said Daniel Petrocelli, a lawyer for Skechers. He said that Britney Brands was aware that Skechers intended to sue the singer and raced to the courthouse first in “a publicity stunt.”

Britney Brands in Kentwood, La., couldn’t be reached Tuesday. Her publicist in Los Angeles and her lawyer also couldn’t be reached.

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Skechers hired Spears in September 2000. In January, the company expanded the agreement to include a line of roller skates and accessories that would have Spears’ autographs, photos and logos.

The three-year agreement was valued at $5 million, Britney Brands said.

Spears’ suit seeks at least a $500,000 royalty payment she claims is due Jan. 1.

She also wants the court to order Skechers to continue to advertise and promote her skating accessories when they are ready for sale.

Skechers shares rose 8 cents to $7.88 on the New York Stock Exchange. This month, the footwear maker said it will have a fourth-quarter loss instead of a profit as competition from Nike Inc. and Reebok International Ltd. hurt sales.

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