Midday Market Minute: Macy's Takes J.C. Penney, Martha Stewart to Trial

Today begins the Crock-pot trial of the century: an attempt by Macy's (M) to block a deal between Martha Stewart Living Omnimedia and J.C. Penney (JCP).

Bloomberg reports that Macy's sued Martha Stewart's eponymous lifestyle empire in New York State Supreme Court in January 2012. The country's second-largest department-store chain was trying to prevent the enactment of a pact between Martha Stewart Living and J.C. Penney; Macy's says it holds exclusive rights to sell Stewart-branded bedding, cookware and the like.

Martha StewartIn a pretrial memo, Macy's takes credit for moving the Martha Stewart brand -- "associated with the significantly downscale Kmart" at a time when "Ms. Stewart was just being released from prison" -- and moving it upscale, "a herculean task under the circumstances." Now, Macy's says, Martha Stewart Living and J.C. Penney "seek to reap the rewards of Macy's work and usurp the benefits of Macy's contract."

For its part, Martha Stewart Living claims its products were given the short end of the stick by Macy's in terms of stocking and pricing, which the company says constitutes breach of contract.

Increase your money and finance knowledge from home

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Investment Strategies

What's your investing game plan?

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

I am one of those "down-scale" people who used to buy Martha Stewart lovely items at K-Mart. You mean they are not there now? I never go to Macy's. I even bought her house paint there. Oh well. This all must make her feel important anyway.

February 20 2013 at 9:50 AM Report abuse rate up rate down Reply

Macys has lost so much money selling Donald Trumps stuff they go to get some free money from somewhere to make up for the loss

February 20 2013 at 12:54 AM Report abuse rate up rate down Reply

I have bought Martha Stewart stuff at Walmart before. You can find her stuff at many stores. What is Macy's talking about? Nobody owns anyone anymore. Get over it Macy's...and lower your prices

February 19 2013 at 11:02 PM Report abuse +1 rate up rate down Reply

The best and softest towels I ever purchased were Martha Stewart\'s and they were from MACY\'S, not K-Mart; and they were very reasonably priced. Love MACY\'S!

February 19 2013 at 10:55 PM Report abuse rate up rate down Reply

I guess that someone needs to tell Macy's that it needs to add the federal government to the lawsuit, because I just bought a Martha Steward towel at the military base exchange department store on Andrews Joint Service Base

February 19 2013 at 10:48 PM Report abuse rate up rate down Reply

We were able to find great Martha Steward brand non-wrinkle soft sheets and, as ads for every store say, "thick and thirsty" towels that are also soft and durable at K-Mart for remarkably reasonable prices considering the quality. The Stewart sheets and towels presented by Macy's were not nearly the great quality they were at K-Mart (must have changed factories in China) but obscenely priced.

February 19 2013 at 5:38 PM Report abuse rate up rate down Reply

Don't care how much her products are "upscale".......won't buy them!

February 19 2013 at 3:49 PM Report abuse +2 rate up rate down Reply
1 reply to Pusskit's comment

her products are "upscale"


What is with all this upscale crap? Most of us are normal, everyday downscale people who do not mind shopping at discount stores.

February 20 2013 at 9:52 AM Report abuse rate up rate down Reply