Two apparel companies are seeking damages from a former business partner after alleging that the partner introduced competing products before their licensing agreement ended, potentially costing them millions in lost sales. The complaint was filed by Maidenform LLC and Hanes Jiboa Holdings, LLC in the United States District Court for the Middle District of North Carolina on April 6, 2026, naming Coconut Grove Pads, Inc. as the defendant.
According to court documents, Maidenform LLC and Hanes Jiboa Holdings had partnered with Coconut Grove Pads since at least September 2010 through a series of licensing agreements that allowed Coconut Grove to manufacture and distribute intimate apparel accessories under designated trademarks. These products were sold in major retail channels such as Kohl’s, Walmart, and Target across the United States and Canada.
The relationship began to change in late 2024 when Coconut Grove approached Hanes about extending their current license agreement, which was set to expire on December 31, 2025. After reviewing its business strategy, Hanes decided not to renew the license and instead planned to bring manufacturing and sales operations in-house. This decision was communicated to Coconut Grove on November 14, 2024. To ensure a smooth transition for customers, both parties agreed to extend the license until March 31, 2026. As part of this plan, they decided not to inform retail accounts about the transition until October 9, 2025.
However, Hanes claims it later discovered that some retail accounts had already been told that Hanes was leaving the product category entirely and that existing products would be marked down for liquidation. Further investigation revealed that Coconut Grove had allegedly sold its own competing product line—called “Nudish”—to at least one account before October 15, 2025. By February 2026, Nudish products were available on store shelves at retailers like Kohl’s and Target.
The complaint outlines several provisions in the license agreement meant to protect Hanes’s interests during its term. One section prohibits Coconut Grove from developing or selling competitive products within approved accounts without written approval from Hanes. Another section requires coordination on communications with accounts during any transition period.
Hanes alleges that Coconut Grove breached these terms by introducing Nudish products while still bound by the agreement. The plaintiffs state: “Coconut Grove breached Sections 2.5 and 7.3 of the License Agreement as part of an overarching plan to replace its dealings of Maidenform Licensed Products with its own product called ‘Nudish’ while the License Agreement was still active.”
In addition to contract breach claims, Hanes accuses Coconut Grove of making false statements to retailers about Hanes’s intentions regarding product lines and innovation efforts. For example, it is alleged that Coconut Grove told Kohl’s that Hanes was exiting certain markets altogether rather than internalizing production—a misrepresentation which led Kohl’s to mark down Maidenform inventory early in preparation for Nudish replacements.
The complaint further details similar issues with Target and Walmart accounts. In one instance cited by Hanes: “Walmart responded: ‘Thanks for the info, unfortunately — (because I didn’t know you were taking back the license) I have already booked a new brand for that space….’” According to plaintiffs, this “new brand” was also provided by Coconut Grove.
Hanes is pursuing three causes of action: breach of contract; tortious interference with prospective economic advantage; and violation of North Carolina’s Unfair and Deceptive Trade Practices Act (N.C.G.S §75-1.1 et seq.). They allege actual damages including lost sales opportunities amounting to millions of dollars as well as harm caused by misleading communications with key retail partners.
As relief from the court, Maidenform LLC and Hanes Jiboa Holdings seek compensatory damages exceeding $75,000—the jurisdictional minimum—as well as treble damages under state law provisions for unfair trade practices. They also request injunctive relief against further breaches or deceptive acts by Coconut Grove Pads along with attorneys’ fees.
Attorneys representing Maidenform LLC and Hanes Jiboa Holdings are Jason M. Wenker, Elisabeth P. Briand (both based in Winston-Salem), and D. Richard Self (based in Raleigh), all from Kilpatrick Townsend & Stockton LLP. The case is identified as Case No. 1:26-cv-00319.
Source: 126cv00319_Maidenform_LLC_v_Coconut_Grove_Pads_Inc_Complaint_Middle_District_North_Carolina.pdf
