JC Penney Co. Inc. (Plano, Texas) and Martha Stewart Living Omnimesdia Inc. (New York) have reached a settlement on their disputed merchandising agreement, The New York Times reports.
Under the revised agreement, Penney’s will not sell kitchen, bed and bath products designed by Martha Stewart that were sold under the label “JCP Everyday.” But it will continue to market other Martha Stewart merchandise, including window treatments, lighting and rugs under the label “MarthaHome.”
The department store organization will also return 11 million common shares of Stewart’s company that it acquired in the initial agreement and it will give up its two seats on the Martha Stewart board.
A judge is expected to rule any day now on the long-running legal dispute between Penney’s and Macy’s Inc. (Cincinnati) over the rights to sell branded Martha Stewart housewares. Macy’s had charged that both Penney’s and Stewart breached an exclusive agreement that Macy’s had with Martha Stewart covering all kitchen, bed and bath merchandise.
“It was a complete surrender,” Theodore Grossman, one of Macy’s lawyers in the case told the Times. “Total victory.”