Kim Kardashian-West's plan to sell stake in beauty line hit by legal challenge

Existing partner Seed Beauty secures injunction citing threat to its trade secrets

Kim Kardashian and Kanye West attend the Vanity Fair Oscar party in Beverly Hills in February. Ms Kardashian West's talks to sell her beauty care line to cosmetics giant Coty has hit a stumbling block after existing partner Seed Beauty filed an injunction blocking the deal. Reuters  

It may take a court injunction to keep up with the Kardashians.

Kim Kardashian West’s partner for her beauty line won a court order temporarily blocking the reality TV star from sharing trade secrets in their agreement as she pursues a stake sale to rival Coty.

Seed Beauty, Kardashian West’s partner, said in a court filing that Coty would gain “an unfair competitive advantage” from access to Oxnard, California-based Seed’s “most sensitive and highly confidential information”.

Seed typically partners with celebrities to develop beauty brands and manufactures the products.

The injunction may delay negotiations with Coty, which said earlier this month it is in talks with Kardashian West for a possible collaboration “with respect to certain beauty products”. The possible partnership comes just months after Coty closed a $600 million (Dh2.2bn) deal with her sister, Kylie Jenner.

In the court filing, Seed, which also has a partnership with Ms Jenner, said her company wouldn’t say if terms of their agreement were shared with Coty.

Seed said the evidence it uncovered “strongly suggests” Coty has been using the deal due diligence process to obtain confidential, proprietary and trade secret information on its direct-to-consumer business model.

“We are pleased that the court recognised the threat posed to Seed, and we will take further action as needed to protect our rights and business agreements,” Seed said in a statement through its lawyer.

Representatives for Ms Kardashian West, Coty and Ms Jenner didn’t immediately respond to emails seeking comment sent late on Saturday.

The clan’s influence can’t be underestimated. On Friday, Gap announced a tie-up with Ms Kardashian West’s husband, rapper Kanye West, for a new line of apparel for men, women and kids called Yeezy Gap. The struggling apparel company’s shares soared the most in at least 40 years after the announcement with Mr West, whose sneaker line with Adidas routinely sells out.

The case is Seed Beauty LLC v KKW Beauty LLC, 20VECV00684, California Superior Court, Los Angeles County.