German jeweller sues Bay for $2.3 million over licence deal

A German designer of luxury jewelry is suing troubled Hudson’s Bay Canada for $2.3 million in B.C. Supreme Court.

Amor Germany and its B.C.-based subsidiary, Amor Canada, have filed two lawsuits alleging nonpayment of proceeds from a licence agreement the two companies signed in 2010.

The German company says it is owed $1.1 million for sales between February and August of 2024 and another $1.2 million for sales after that, according to the lawsuits.

On Friday, HBC announced it had filed for creditor protection to avoid bankruptcy after struggling with rising inflation, a post-pandemic decrease in downtown store traffic, and, now, rising trade tensions between Canada and the U.S.

Amor filed the lawsuits on the same day, March 7.

From February, 2024, to August, “HBC unlawfully retained $2,243,700.29 in contravention of the licence agreement,” the lawsuit alleges.

In September, that dispute was resolved when HBC agree to pay Amor $85,000 a month and if it failed to do so, Amor could file a consent order HBC gave to the jeweller at the time to collect on the amount remaining, it said.

But, Amor said HBC stopped making the payments for the February-August period in January, after having paid about $1.1 million, leaving it with about $1.1 million left to pay, and Amor provided notice to HBC of the default.

“HBC did not remedy those defaults within seven days (as agreed),” it said.

None of the allegations have been proven in court.

Messages left with Amor’s lawyer and with HBC weren’t immediately returned.