CRANSTON – Alex and Ani LLC is being sued over the aborted sale of its since dissolved Seven Swords Media subsidiary.
In a complaint filed in Providence Superior Court on Friday, GoGo Media Inc., also of Cranston, said Alex and Ani broke its “promise” to sell Seven Swords for $2 million in March.
As a result of this alleged breach of contract, GoGo Media said it gave up existing clients, changed its business model and expanded its offices unnecessarily, the complaint said.
GoGo Media asked for unspecified compensatory and punitive damages, plus legal costs.
“GoGo Media, in reliance upon the promises made by Alex and Ani, substantially changed position to its detriment,” according to the complaint, filed by GoGO attorney Brian D. Gross of Manion, Gaynor & Manning LLP of Boston. “Among other things, GoGo Media gave up a large infusion of cash from its investors, completely changed its business model, gave up existing contracts as part of its acquisition of Seven Swords and increased its leased space to accommodate expanded offices.”
Starting in November 2013, the two parties negotiated a transaction that would eventually have had GoGo Media acquire Seven Swords along with an exclusive contract to manage Alex and Ani media buys of at least $22.5 million (with a 15 percent commission), according to the complaint.
By January, Alex and Ani investors JH Partners had approved the deal and Alex and Ani CEO Giovanni Feroce had signed a term sheet. By the first week in February, GoGo had assumed operational control of Seven Swords with Seven Swords employees formally moving in to expanded GoGo offices.
Then on March 14, Alex and Ani, “abruptly and without explanation” informed GoGo that the deal was off, the complaint said.
Alex and Ani had announced that Feroce had left the company the previous day.
In May, Alex and Ani announced that it would dissolve Seven Swords and turn over its marketing to an external agency.
“We believe we have a strong legal defense in this case, and we look forward to resolving this matter before the court,” said Alex and Ani spokesman Gregg Perry in an e-mail.
No posts to display
Sign in
Welcome! Log into your account
Forgot your password? Get help
Privacy Policy
Password recovery
Recover your password
A password will be e-mailed to you.