Market Commentary and Intraday News
Penney scores win in dispute over Martha Stewart
262 days ago
(AP:NEW YORK) New York State Court judge declined Macy's bid for an order that would have hampered J.C. Penney Co.'s ability to sell Martha Stewart products in its stores.
Earlier this month, Macy's Inc. sued rival retailer J.C. Penney, claiming Penney's deal to sell products by Martha Stewart Living Omnimedia Inc. violated an exclusive contract held by Macy's. Macy's said Penney's deal with Martha Stewart Living, announced in December, could potentially cost it billions in sales. Macy's sought unspecified damages and an order blocking the Penney-Martha Stewart Living deal.
In July, Macy's had already received a preliminary injunction that temporarily blocked Martha Stewart from selling products covered in its agreement with Macy's at Penney stores. The decision is being appealed.
Martha Stewart Living has said that the deal with Penney doesn't violate its older contract with Macy's.
Macy's spokeswoman Sharon Bateman said in an email to The Associated Press Friday that Justice Jeffrey Oing issued Thursday's decision because Penney had agreed not to sell certain Martha Stewart merchandise exclusive to Macy's as long as that injunction was in effect.
The Martha Stewart products exclusive to Macy's include cookware, kitchen utensils, and bed and bath. The department store's contract with Martha Stewart Living runs until January 2018.
Penney's officials couldn't be reached.
Macy's Inc., based in Cincinnati, sued Martha Stewart Living in January, saying that it had exclusive rights to certain categories of the brand until 2018. The complaint was filed after J.C. Penney acquired a 16.6 percent stake in Martha Stewart Living and announced plans to open Martha Stewart mini-shops beginning next year. Penny, based in Plano, Tex., has been counting on the popularity of the brand as part of its efforts to help revitalize its business under new CEO Ron Johnson.
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