Billionaire rag trader Solomon Lew's Just Group has lost its appeal against stopping the company's former chief financial officer Nicole Peck from joining rival Cotton On.
Ms Peck will now be able to begin her appointment at Cotton On after being stopped from taking up the position mid-way through this year by Just Group's legal action.
Billionaire rag trader Solomon Lew's Just Group has lost its appeal.Credit: Daniel Pockett
Victorian Court of Appeal threw out Just Group's application last week after agreeing the restraint clauses in Ms Peck's contract were too broad and too loosely written to be enforceable.
Just Group, which owns Just Jeans, Portmans and beloved schoolkids stationery supplier Smiggle, took legal action against Ms Peck after she resigned to take up the role of chief financial officer at Cotton On five months after joining Just Group. Just Group is owned by listed company Premier Investments.
Earlier this month, Just Group named John Bryce as CFO. Mr Bryce had been acting in the position since Ms Peck's departure. Just Group also paid Ms Peck's wages during the legal dispute.
Ms Peck had told the court she had left Just Group in part because Cotton On, which owns several brands including its eponymous value fashion chain, stationery supplier Typo and young women's fashion outlet Supre, was based in Geelong, which was where she and her family live.
Ahead of joining Just Group, Ms Peck had been the chief financial officer of Barwon Health, Nufarm and retail chain Target.
Just Group had alleged Ms Peck's contract restrained her from working for a list of 50 other retailers for up to 24 months.
It had also alleged Ms Peck was in effect second in charge and had been privy to confidential information about Just Group's business plans and there was a risk Cotton On could benefit from that information. This allegedly included information pertaining to the roll out of new Smiggle stores in the UK. Cotton On is also expanding its Typo chain.
The Court of Appeal found the restraint clause related to too many companies and limited Ms Peck from working for a company in a position even when the information she acquired during her employment with Just Group would be irrelevant.
Just Group declined to comment.