Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Videos
General Retailers
Department Stores
Return to: RBR Home | General Retailers | Department Stores

Martha Stewart denies breach of contract with Macy's

RBR Staff Writer Published 06 March 2013

Merchandising company Martha Stewart Living Omnimedia (MSLO) has denied claims of contract violations as alleged by retail major Macy’s.

The breach pertains to MSLO forging a partnership with JC Penney while Macy's held the rights to exclusively merchandise the former's products.

MSLO founder Martha Stewart testified at the New York State Supreme Court with regard to a suit filed by Macy's and claimed that allegations were surprising.

"We thought, I hope rightly, that we were absolutely allowed to do such a thing. It just boggles my mind that we're sitting here. It's a real problem for a company like ours," said Stewart.

Earlier in February 2013, Macy's has filed a lawsuit against MSLO and JC Penney for breach of the terms of its contracts with the merchandising firm.

According to the contract, Macy's had the exclusive rights to retail MSLO branded products besides giving latter a provision to open two fully owned standalone stores.

MLSO, however, went ahead and entered into a separate contract with JC Penney securing rights to also sell MSLO's merchandise.

Macy's CEO Terry Lundgren earlier said that he was informed about the contract one day before the launch of its products in JC Penney stores.

The New York state Justice Jeffrey Oing has meanwhile refrained J.C. Penney from selling MSLO's products in categories that are deemed exclusive as per its contract with Macy's - such as cookware and bedding.