Thursday, 27 June 2013
Paula Deen's dealing stunned by storm
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Paula Deen's dealing stunned
by storm
Paula Deen's southern cookery empire constant
to unknot Thursday as major brands jump ship, prompting the star chef to seek
out qualified crisis-management support.
Home
improvement giant Home Depot and retailer Target have decided to end their
deals with Deen while drugmaker Novo Nordisk has suspended its relationship
with her Thursday. Late in the day, home shopping channel QVC said it has
"decided to take a pause" from selling Deen's products.
"Paula won't be appearing on any upcoming broadcasts and we will phase out
her product assortment on our online sales channels over the next few months.
We all think it's important, at this moment, for Paula to concentrate on responding
to the allegations against her and on her path forward," said QVC
president Mike George in a letter.
George's
letter went on to say that the company believes in second probability and this
may not be a "forever decision" for QVC.
Home Depot (HD, Fortune 500), which until now had
been selling Paula Deen-branded kitchen and cookware, said it was no longer
selling her products online. Target (TGT,Fortune 500) said it would also cease her branded
products. "We have made a conclusion to phase out the Paula Deen
merchandise in our stores as well as on Target.com. Once the merchandise is
sold out, we will not be replenishing inventory," said spokeswoman Molly
Snyder.
Paula
Deen, who is famous for her fondness of butter and other unhealthful foods, has
been mired in controversy before. Last year after months of rumors, she
admitted to havingbeen diagnosed with type 2 diabetes and that she'd be the spokeswoman for
Novo Nordisk's "Diabetes in a New Light" educational campaign. Novo
Nordisk manufactures Victoza -- an injectable, non-insulin drug used in the behavior
of type 2 diabetes.
"Novo
Nordisk and Paula Deen have mutually agreed to suspend our patient education behavior
for now, while she takes time to focus her concentration where it is
needed," the company said.
The
news comes just one day after Wal-Mart and Caesars Entertainment Corporation announce
they would end their relationships with Deen amid the growing controversy.
In
an attempt to stop the hemorrhaging, Paula Deen has hired Smith & Company,
the crisis-management firm run by Judy Smith -- the inspiration for the hit ABC
show Scandal -- according to a source familiar with the arrangement. Smith has
served as a consultant for a host of high profile customers including Monica
Lewinski, Michael Vick, Wesley Snipes and Jill Kelley, the mistress of former
CIA director General David Petraeus.
Deen's
latest troubles began almost two weeks ago when a evidence in a favoritism
lawsuit was released in which she admit using the n-word in the past. Dean has
insisted she does not tolerate prejudice, but her apologies have failed to
suppress the controversy.
Wal-Mart (WMT, Fortune 500), which sold Paula Deen
branded baked goods, cookware, dishware and kitchen appliances, and Caesars (CZR, Fortune 500), which operated
Paula Deen-themed restaurants at four of its casinos, cut Deen loose on
Wednesday.
Pork
producer Smithfield Foods, with a line of Deen-branded hams, dropped her as a spokeswoman on Monday.
Last week, the Food Network said it wouldn't renew Deen's contract when it expires at the end of the month.
Editor's note: A previous version of this story said that Novo
Nordisk had ended its relationship with Paula Deen.
The business says it has suspended its connection with the chef. 
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