The two-year legal battle between Martha Stewart and Macy's is over.
Macy's Inc. announced on Thursday it reached an agreement with Martha Stewart Living Omninmedia Inc. over whether or not Stewart violated an exclusivity contract by selling specific items at J.C. Penny, Bloomberg reported. The terms of the agreement were not released, but Stewart and Macy's said it does not affect their businesses.
Macy's filed a lawsuit in Jan. 2012 against Stewart, claiming she broke their contract when she began selling items like bedding, bath and cookware at J.C. Penny. According to the contract, Macy's was supposed to have the exclusive right to sell Stewart-designed items, the Associated Press reported. Macy's also filed a suit against J.C. Penny.
Stewart testified in March 2013 that she did not go against the 2006 contract when she closed the 2011 deal with J.C. Penny, and that it was really Macy's who violated the contract. Stewart said Macy's did not do what it could to increase profit for her business.
"We were disappointed," Stewart said, according to the AP. "We did have hopes that the business would be much bigger...We got to a certain dollar amount and struggled and never got any further."
Stewart also asserted her contract with Macy's lets her sell goods in other locations as long as it's in a Martha Stewart store. Martha Stewart items were sold in smaller shops within J.C. Penny locations. The smaller shops were still Martha Stewart stores, even if they did not "stand alone," the AP reported.
"I don't think you need walls to be a store," Stewart said, the AP reported.
J.C. Penny later changed the label on Stewart items after Macy's filed the lawsuit. The new label read "JCP Everyday." But Macy's wanted those items pulled because they were designed by Stewart, Bloomberg reported.
Macy's lawsuit against J.C. Penny is still pending.
