Retailer faces the mother of lawsuits

Mighty Mom has accused Pick n Pay of reneging on a sponsorship deal for various projects, including funding to market and distribute its resource manual.

The project, which has 2000 members in SA, was officially launched last October by the retailer to empower and support local mothers.

The 528-page manual, which costs R285, covers topics ranging from beauty, style, finance, food, nutrition, legal advice, to safety and security.

Founder Philippa Robertson Smith, a single mother of two, said two years after entering into an agreement, the retail giant has failed to keep its end of the deal.

“Despite Pick n Pay's public advertising slogans ... sponsorship funds have not been forthcoming, purchases have not been paid for and the entire Mighty Mom brand has been compromised,” she said.

Pick n Pay, meanwhile, claims Mighty Mom had not committed to “tangible deliverables”.

The project, which launched with 21 employees, has since downsized to two. Robertson-Smith said the lack of sponsorship money had forced her to retrench staff.

“I've had to close down the offices and move my business to my home. At this stage I'm on the brink of being evicted,” she said.

Mighty Mom's attorney Mark Finkelstein said he would file summons on the retailer this week.

“We have informed Pick n Pay that we are proceeding and that we are seeking millions in damages from the company,” he said.

He would not divulge the exact amount until he had quantified all damages. Finkelstein said Pick n Pay had promised to promote the manual through its call centre and predicted it would sell 120,000 copies.

“In the interim Pick n Pay ordered 2000 manuals but only paid for 965. Robertson-Smith is still owed for 1035 manuals,” he said.

Robertson-Smith said instead of the retailer supporting its most important client — Mighty Mom — they had “crushed” a company which tried to help the mothers.

But Pick n Pay's marketing director Jonathan Ackerman denied wrongdoing. “This was a joint venture and it was Mrs Robertson-Smith who did not commit to tangible deliverables, which Pick n Pay asked for before the project could proceed.

“While we still believe this is a worthwhile concept, we are unable, in good conscience, to give financial support to any project without first receiving clarity as to how Pick n Pay's contribution has been spent to date, and agreement as to how future sponsorship will be spent.”

He said Robertson-Smith was offered a cash settlement for the outstanding manuals in return for viewing the stock of manuals.

“She has up until now refused to allow us to view the stock that she maintains has already been printed,” said Ackerman.

But Robertson-Smith told The Times she would deliver the manuals only after she had received payment. She said she had met Pick n Pay last year to discuss how the sponsorship money had been spent.

Source: The Times

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