J.C. Penney, Sephora Settle Dispute Over Beauty Boutiques

(RTTNews) - J.C. Penney Co. and Sephora USA Inc. agreed to resolve a legal dispute over the continued operation of in-store beauty boutiques. But they did not disclose the financial terms of the settlement.

"Both companies worked constructively to resolve outstanding legal matters and have agreed to mutually beneficial revisions to their joint enterprise operating agreement," the two companies said in a statement.

J.C. Penney reportedly had filed a lawsuit last month to block Sephora from closing its in-store boutiques. It alleged that the beauty products company threatened to walk out on their agreement over the boutiques.

Sephora has apparently been trying to close its shops inside J.C. Penney earlier than expected. If Sephora exits J.C. Penney, the department store chain would lose its beauty products sales.

Since 2006, Sephora, which offers makeup, fragrances, skin and haircare brands, has been operating its boutiques within more than 600 Penny's locations.