Macy's sues Martha Stewart Living

NEW YORK -- Macy's Inc. has sued Martha Stewart Living Omnimedia Inc. in a bid to block a licensing deal between the housewares company and J.C. Penney Co.

The lawsuit was filed Monday in New York State Supreme Court. Macy's claims Martha Stewart Living's deal with J.C. Penney violates the terms of an exclusive pact Macy's has to sell Martha Stewart Living products at its stores, according to reports in The Wall Street Journal and other publications.

The complaint comes after Plano, Tex.-based J.C. Penney acquired a 16.6 percent stake in Martha Stewart Living and announced plans last month to open mini-Martha Stewart shops inside most of its stores, beginning next year. The deal announced last month was seen as part of J.C. Penney's efforts to re-image itself under its new CEO Ron Johnson, a former Apple Inc. executive.

Cincinnati-based Macy's has asked the court for a preliminary injunction to block the deal.

Martha Stewart Living said it does not comment on legal matters, but issued a statement saying that it received a notification from Macy's that it intends to renew and extend its commercial agreement with Martha Stewart Living to feature and promote the Martha Stewart Collection in Macy's stores.

The New York-based lifestyle, media and merchandising company also noted that its commercial agreement with J.C. Penney remains in effect.

Calls and an email seeking comment from Macy's and its attorney were not immediately returned late Monday.

Macy's shares added 9 cents in aftermarket trading. The stock ended regular trading down 29 cents at $35.09.

Martha Stewart Living shares slid 15 cents, or 3.5 percent, to $4.15 in aftermarket trading after slipping 13 cents, or 2.9 percent, to $4.30 during the regular session.

[credibility2]

On the one hand Macy's contends that they had exclusivity for the brand. On the other hand, they notified the brand of its intent to want to continue representing the brand. The latter appears that the agreement between the brand and Macy's had expired "...Martha Stewart Living said it does not comment on legal matters, but issued a statement saying that it received a notification from Macy's that it intends to renew and extend its commercial agreement with Martha Stewart Living to feature and promote the Martha Stewart Collection in Macy's stores...". Sounds to me like Macy's doesn't have a leg to stand on.

[Jaylah54]

Okay, this is funny.

I stop shopping in stores that sell Martha Stewart junk.

I stopped shopping at KMart because I could no longer get a decent vegetable-peeler there. All that was available was an over-priced piece of Martha Stewart crud that started out as dull as a butter-knife and only got worse from there. (Well, that and the fact that there were never more than 2 cashier lanes open and I didn't like to wait in line for 30 minutes behind 4 people with full carts, when I only had 2 items.)

There is no Macy's store for miles around here, but I used to have a Macy's credit card and shopped there on-line occasionally. I stopped when they started selling Martha Stewart junk. Any store that will stock that product line shows me that they are not at all interested in selling quality merchandise.

There is a JC Penney store here in town. Won't be going there any more, either.

[underdogcity]

I'm not a Martha Stewart fan either. Her 'junk' is highly overpriced and sometimes you may find items very similar to hers, in the dollar stores.

I avoid stores that sell her stuff, and I don't understand how anyone can support her products. Especially these days, when people want more for their dollars. It seems her time in jail has been forgotten and has only given her company a boost in sales.

[credibility2]

...you can always shop at Walmart, Target or Kohls...Walmart, especially has very high quality manufactured products...