Retail News South Africa

Retailer 'using delaying tactics'

Mighty Mom, a project to empower South Africa's mothers, has accused listed retailer Pick n Pay of using 'delaying tactics' in the litigation process between the parties.

The retailer and the project are at loggerheads followed Mighty Mom's allegations that Pick n Pay had turned its back on a sponsorship deal which included funding to distribute the project's resource manual.

In a statement on Wednesday, 6 January 2010, Mighty Mom said its attorney had been approached by Pick n Pay's lawyer requesting a ten-day "stay" in summons.

"The request is based on their claim that new evidence has come to light resulting in the possibility of expedient settlement, and was agreed to by Philippa Robertson Smith of Mighty Mom," the group said.

It said supporting correspondence from Pick n Pay had requested that the project appreciate the fact that both Jonathan Ackerman and Malcolm Mycroft of Pick n Pay had "limited history" with Mighty Mom and were not in possession of the full facts when they ignored the project's earlier requests.

According to Mighty Mom, Pick n Pay had indicated that it was "keen to rectify the matter".

However, Robertson Smith, said that while the 10-day request was granted in good faith, "yet again the deadline has been ignored."

"We have heard not a thing, leaving us to attempt to decipher whether this is a delaying tactic, lack of integrity or just blatant disregard for the little person," she added.

A glimmer of hope, she said, was that the parties had agreed that mediation should take place later this month.

This was, however, merely a verbal agreement.

"Yes, we are open to the mediation - our facts are clear, as is our case. However, we are terribly frustrated," Robertson Smith said.

She added that the project was "unclear as to what went wrong" and why Pick n Pay had not delivered as promised.

According to the project, a full progress report, including a campaign analysis was provided by Mighty Mom to Pick n Pay during 2008.

Ackerman is on record as saying Pick n Pay could not give financial support to any project without receiving clarity on its contribution.

However, Robertson Smith said Mighty Mom had yet to receive any form of correspondence suggesting that Pick n Pay had been unhappy with what had been delivered.

"In line with the recommendations of the King III report and on the advice of its representatives, Mighty Mom has elected to choose the mediation route over litigation."

She said she had been advised that the King III report would have the effect of levelling the playing field, "with the aim of preventing large, cash rich companies from dragging out litigation simply to frustrate less cash enabled opponents."

Pick n Pay could not comment immediately.

Source: Sapa

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