Martha Stewart Being Sued by Macy’s
Martha Stewart, who got our of a one-year jail sentence for obstructing justice, is now being sued by Macy’s Inc. Martha Stewart Living Omnimedia Inc., the entire company name to be exact, is said to be in breach of their contract with Macy’s who intends to block a new licensing agreement with rival J.C. Penney Co., saying the agreement violated its own exclusive arrangement with the brand according to WSJ.
The lawsuit was filed in a state court in Manhattan about a month after J.C. Penney inked a deal with Stewart. Under the deal, J.C. Penney is to sell its own line of Martha Stewart-branded home and kitchen items and will create Martha Stewart stores within its department stores nationwide as of February 2013. The slap in the fact to Macy’s is that Penney is said to have paid $38.5 million for a 16.6% stake in Martha Stewart Living. Considering the fact that Macy’s was offered none of the above while featuring a larger Martha Stewart selection, things could get ugly. Martha Stewart Living agreed “to grant Macy’s the exclusive right to manufacture and sell Martha Stewart branded products in certain exclusive product categories,” Robert Micheletto, a partner at Jones Day who represents Macy’s, wrote in court papers.
Stay tuned for more as this battle unfolds.
