Shares of Martha Stewart Living Omnimedia Inc. dropped 5.7 percent to $2.32 Thursday as investors worried over the company’s relationship with J.C. Penney Co. Inc.
The New York Post reported that Penney’s chief executive officer Myron “Mike” Ullman 3rd was going to drop the retailer’s line of Martha Stewart home goods. The 2011 deal that created the collection is now the subject of a battle in New York Supreme Court with Macy’s Inc., which already had an agreement with the brand.
But a Penney’s spokeswoman said, “With regard to the product categories at issue in the lawsuit, the company is awaiting the judge’s ruling and we are not commenting any further.”
Penney’s former ceo Ron Johnson negotiated with Stewart to create the controversial line and also spent $38.5 million for a 16.6 percent stake in the home goods firm.
A Martha Stewart spokeswoman noted that: “J.C. Penney remains one of our many retail partners. Our agreement with them is in force, and we have no intention of ending it.”
A source at Penney’s said a lot was going to depend on how the judge rules.
In the meantime, the retailer is making some adjustments in the home area, which was recently revamped but flopped with consumers.
“Things have to earn their space in the home department and the way it currently stands, Martha has a lot of space with lower-dollar items like paper products,” the source said, noting some of the brand’s offerings might deserve more space, such as window coverings.
Shares of Penney’s gained 5.3 percent to $14.22 Wednesday.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews