Why is macys suing martha stewart

But Macy's said the settlement does not impact its lawsuit against J. Penney, which is still ongoing. Macy's and Martha Stewart Living Omnimedia said Thursday that their settlement terms are confidential and not material to their businesses. Both companies said that they look forward to "a continued, successful partnership together.

Macy's has had an exclusive merchandising contract with Martha Stewart since , including items like bedding and bath products. At issue was a agreement in which Martha Stewart was to design bed, bath and kitchen products for sale at JC Penney stores being revamped by the retailer's since-ousted chief executive, Ron Johnson.

Macy's complained that this agreement interfered with its own contract giving it exclusive rights to sell the same kinds of products under the Martha Stewart brand. JC Penney declined to comment, except to say it was pleased that punitive damages were not warranted. Macy's spokesman Jim Sluzewski called Thursday's decision a "resounding victory" for the Cincinnati-based company.

For Macy's, going downmarket looks like the way ahead: Reuters - Macy's Inc's planned push into the off-pric Penney Co. The lawsuit, filed under seal in state court in Manhattan, comes about a month after J. Penney inked a deal with the company founded by celebrity homemaker Martha Stewart.

Under the deal, J. Penney will sell its own line of Martha Stewart-branded home and kitchen items and will create Martha Stewart stores within its department stores beginning in February The move angered Macy's, which has carried a line of Martha Stewart home and kitchen products since The line, which includes everything from bedding to dinnerware and furniture, is the department store's top-selling home brand, a person familiar with the matter has said.

On Monday, Macy's said it was suing Martha Stewart Living for breaching its contract by cutting a deal with Penney to sell products that are allegedly covered by the Macy's agreement.

Martha Stewart Living declined to comment on the lawsuit. The company's president, Lisa Gersh, said in December that the Penney line would be "completely different" from the products carried at Macy's.

The dispute gets at core issues for the companies.