Macy’s has filed a lawsuit against the Kaufman Organization last week to prevent Amazon from advertising on a billboard on top of its flagship store in Herald Square.
Macy’s claimed that a 1963 contract filed as an exhibit in the Sept. 24 lawsuit in New York state court, includes a provision saying that the billboard “shall be limited forever” from being used by anyone other than Macy’s for advertising.
Macy’s requested for the judge for an injunction in the lawsuit to keep Kaufman from leasing the space to Amazon or any other competitor.
“The damages to Macy’s customer goodwill, image, reputation, and brand, should a ‘prominent online retailer’ advertise on the billboard are impossible to calculate,” said Macy’s in the complaint.
The real estate company, Kaufman Organization, argued that it is not bound by the restriction.
The lawsuit came after a May 21 conversation between Ed Hart, CEO of the Kaufman Organization, and Macy’s real estate leader Benjamin Brotzman where Hart informed the latter that his company “was in discussions with a very ‘prominent online retailer’ concerning the advertising on the billboard.”
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