Macy’s sues Martha Stewart Living Omnimedia
Martha Stewart attends the 4th annual Martha Stewart Center for Living at Mount Sinai gala at the Martha Stewart Living Omnimedia headquarters in New York City on Nov. 16, 2011.
Macy's Inc. is suing Martha Stewart Living Omnimedia Inc. for breach of contract, following news that Stewart’s company has inked a deal to sell Martha Stewart housewares at JC Penney Co. Inc. stores.
In December, JC Penney gained a 16.6 percent stake in Stewart’s company in exchange for $38.5 million and a 10-year merchandise deal, the Wall Street Journal reported.
Macy's has sold Martha Stewart housewares in its stores since 2007, and said in a statement that it had "renewed its agreement to exclusively sell Martha Stewart-branded product in categories such as cookware, kitchen utensils, bed and bath for another five years," Reuters reported.
Macy’s wants preliminary and permanent injunctions stopping Martha Stewart from violating their contract, according to its filing in New York state Supreme Court today, Reuters reported.
According to Fox News:
The feud has the potential to really impact all three bottom lines, as both J.C. Penney and Macy’s rely largely on home goods to drive traffic and sales, and Martha Stewart has become increasingly dependent on merchandising.
According to the Wall Street Journal, it’s estimated that Stewart could make $200 million from the JC Penney deal in 10 years.
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