Ex-Lovisa boss Shane Fallscheer’s new jewellery chain faces lawsuit from CEO Cass Fuller
Only months after Shane Fallscheer kickstarted a rival brand, the company is already facing legal action from sacked CEO Cass Fuller.
The female chief executive of a rival to jewellery chain Lovisa is suing the young business claiming lost wages and super after she was allegedly sacked after only a few months on the job.
Cass Fuller launched the action against Harli + Harpa, a rapidly growing low-cost jewellery business founded by Shane Fallscheer, who left Brett Blundy’s ASX-listed Lovisa in 2021.
A once glowing professional relationship between the pair appears to have broken down, after Ms Fuller called Mr Fallscheer a “mentor” in recent social media posts, referring to a time when she worked for him at Lovisa.
Ms Fuller worked as a project manager and visual merchandise manager at Lovisa from 2011 to 2013, reporting to then-chief executive Mr Fallscheer before he left the jewellery chain in 2021 and set up Harli + Harpa last year. He subsequently hired Ms Fuller as the company’s CEO.
Mr Fallscheer had also commended Ms Fuller’s work ethic, saying she “has my highest of recommendations” in a reference letter he signed, which has been posted on Ms Fuller’s LinkedIn page.
In court documents obtained by The Australian, Ms Fuller — who is still the CEO of Harli + Harpa according to her LinkedIn profile — alleged she worked at the company for two months between October 1 and December 5 last year, having relocated from overseas for the job.
But, she alleged she was dismissed after a meeting on December 5 with Mr Fallscheer at the company’s office in Melbourne’s East Hawthorn, and a subsequent letter emailed to her a day later.
“In that meeting, Mr Fallscheer said words to Ms Fuller to the effect of: a third party will be contacting you,” court documents lodged with the Federal Circuit and Family Court said.
“On 6 December 2024, Fleur Martin, head of people for Harli and Harpa, sent an email to Ms Fuller, attaching a letter.”
In the letter from “head of people” Fleur Martin, Ms Fuller alleged she was told she would be dismissed and was asked not to discuss the matter with any members of the Harli + Harpa team.
“This letter is to confirm that after reflection we have decided that we will not continue with your employment at Harli + Harpa. This letter acts as confirmation of termination of your employment,” the letter said, according to Ms Fuller’s court documents.
“We understand that you have undertaken costs to move home to Australia and I am happy to have an open discussion with you in the hope we can support some of these costs in good faith.
“If relevant — we take this opportunity to remind you of the obligations and undertakings on your part regarding confidentiality and the return of Harli and Harpa property.”
Ms Fuller said she did not perform any further work for the company after the December 5 meeting.
Ms Fuller is now seeking compensation and damages amid allegations she lost $8623.66 in pay and $1105.77 of superannuation on pay in lieu of notice and a loss of $112,107.62 in pay in lieu of notice “by reason of the breach of contract”.
Ms Fuller, who claimed she was to be paid $500,000 for the year to October 2025, alleged the company could terminate her employment without notice, but only in certain circumstances — for example, if she committed an act of fraud or misconduct.
Otherwise, she alleged the company had to give three weeks written notice.
Ms Fuller’s legal team Maurice Blackburn Lawyers declined to comment, as did Mr Fallscheer. It remains unclear what led to the split.
Before Ms Fuller claimed she was fired, a social media post she shared about three months ago indicated a positive relationship with Mr Fallscheer which now appears to have broken down.
“I am happy to share commencing from October 1, I will be taking on the role of CEO at Harli + Harpa, marking a new phase in my career,” she posted on LinkedIn.
“A big thanks to Shane Fallscheer, the founder and inspiration behind Harli + Harpa, my first boss and mentor, for his guidance over the years and for trusting me with this opportunity.
“As I dive into this new chapter, I can’t wait to work with the amazing team at Harli + Harpa. Together, we will continue pushing boundaries and shaping an exciting future for the business.”
Mr Fullscheer signed a positive reference letter for Ms Fuller as “chief executive officer, Lovisa”, at one stage which was posted on her LinkedIn.
“Cass is one of the most motivated intelligent team members I have worked with; she can work independently and always puts the highest of energy into any task asked of her, and ensures that the job gets done,” Mr Fullscheer’s letter said.
“She has been in charge of managing a team and very high workloads. She is flexible and willing to work on any project that is assigned to her,” he said.
“Cass would be an asset for your company and has my highest of recommendations.”
In the Nine papers, Mr Fullscheer was recently described as billionaire Brett Blundy’s “right hand man” during his 12 years at Lovisa — which has a market capitalisation of $3.3bn — and saw the Australian business expanded into an international chain with more than 550 stores globally.
Citi analysts led by Sam Teeger said Harli + Harpa presented a growing risk to Lovisa’s revenue in early December.
The Citi notes report Harli + Harpa opened 18 stores in the three weeks after its first, which launched on November 14.
“Given Lovisa has 178 stores in Australia (end of FY24) the impact on Lovisa’s earnings to date is likely immaterial, however, the rapid pace of openings for Harli + Harpa makes us
incrementally more concerned that Lovisa’s sales and margins would increasingly be impacted over CY25 and potentially sooner over the remainder of 1H FY25,” the Citi notes said.
There are now stores in Victoria, New South Wales and Queensland.
Harli + Harpa have not lodged a defence in the case brought by Ms Fuller, which is listed for directions in February in the Federal Circuit Court.
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