J.C. Penny announces cutback in Martha Stewart partnership

Since 2011, department store rivals J.C. Penny and Macy’s have been battling over the rights to sell certain Martha Stewart products, with Macy’s claiming that it has the exclusive to sell a select category of products. In December of 2011, J.C. Penny paid $38.5 million for a 16.6% stake in MSLO, and said that it would sell Martha Stewart products in its mini-stores. Macy’s then filed lawsuits against both companies in 2012.

On Monday, J.C. Penny and MSLO released a statement about their new arrangement, which “covers a more focused range of product categories over a shorter period of time…than the original agreement.” J.C. Penny will now only sell products that include window treatments and hardware, lighting, rugs and holiday merchandise. Also included in the agreement was J.C. Penny’s surrender of its stake in the Martha Stewart company and its seat on the board of directors.

Macy’s then commented on the arrangement, calling it “a tacit admission by both Penney and MSLO that Macy’s is the only store that can sell Martha Stewart bed, bath, and kitchen goods and that the contract that Penney and MSLO entered into to sell Martha Stewart bed, bath, and kitchen goods at Penney was illegal.”