J.C. Penney, Martha Stewart Win First Round in Fight with Macy’s

Retail

Published: April 11, 2013 8:10 am

Last Updated: April 28, 2020 12:12 am

Source: Courtesy J.C. Penney Co. Inc.; photo by Chris Rupert

A state court judge in New York ruled yesterday that Martha Stewart Living Omnimedia Inc. (NYSE: MSO) did not violate its contract with Macy’s Inc. (NYSE: M) when Martha Stewart revealed the contract between the two to rival J.C. Penney Co. Inc. (NYSE: JCP) while J.C. Penney and Martha Stewart were negotiating a $38.5 million investment in Martha Stewart by J.C. Penney. A spokesman for Macy’s said the company would immediately appeal.

This represents only the first round in the tussle between Macy’s and J.C. Penney over rights to use the Martha Stewart brand. Macy’s asserts an exclusive right to certain merchandise, including bedding and kitchen items. J.C. Penney and Martha Stewart counter that the deal between Macy’s and Martha Stewart is not exclusive.

J.C. Penney planned to sell bedding and other products designed by Martha Stewart, but under a different brand name. The struggling retailer, which just fired its chief executive officer, decided instead to keep these products off the shelves for the time being.

Macy’s lawsuit against J.C. Penney and Martha Stewart resumed this week after a hiatus of nearly a month while the parties tried to reach a mediated agreement.

J.C. Penney stock is up about 0.4% in premarket trading this morning, at $14.15 in a 52-week range of $13.55 to $36.89.

Macy’s shares are inactive, having closed yesterday up about 0.5%, at $44.56 in a 52-week range of $32.31 to $44.95.

Martha Stewart shares also are inactive, having closed yesterday up 4.3% at $2.42 in a 52-week range of $2.28 to $3.89.

Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)

If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.

Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.