A 2011 lawsuit is finally catching up with Martha Stewart and JC Penny (JCP), which yesterday announced they were slowly untangling themselves from their partnership.
While Stewart’s Martha Stewart Living Omnimedia (MSO) company and JCP had a 10-year, $200 million deal that involved 11 million shares of Living Omnimedia, Macy’s (M) quickly filed a lawsuit claiming it had an exclusive contract with Stewart.
A court ruling is expected to come soon unless all parties settle out of court by the end of the week.
So how exactly is JC Penny and Living Omnimedia scaling back the relationship?
From the Star-Ledger:
Martha Stewart’s company said it will still design Stewart-branded products for J.C. Penney, including window treatments and hardware, lighting, rugs, holiday and other merchandise.
It will also receive design fees and royalties, but the 11 million shares of MSLO that JCPenney currently owns will be returned and “JCPenney will no longer have representation on MSLO’s board of directors.”
State Supreme Court Justice Jeffrey Oing, who is hearing the case, has indicated he will rule this week if they can’t reach an agreement.
The N.Y. Post has reported that JC Penney CEO Mike Ullman is planning on ditching the Stewart line from stores ahead of a court ruling.