Macy's Sues J.C. Penney Over Martha Deal

NEW YORK-Coupled with its court action against Martha Stewart Living Omnimedia (MSLO), Macy's has filed suit against J.C. Penney over the agreement between the retailer and MSLO to open Martha Stewart home shops in J.C. Penney stores.

Macy's had sued MSLO concerning this deal in January. J.C. Penney and MSLO announced their partnership in December, which calls for the opening of Martha Stewart home shops in the majority of J.C. Penney stores along with the creation of an e-commerce site devoted to Martha Stewart home products. The in-store shops are scheduled to open in February 2013, and the site will also debut next year.

In the filing, a copy of which was sent to HFN, Macy's said, "J.C. Penney has tortiously interfered, and continues to tortiously interfere, with a contract that Macy's validly entered into with Martha Stewart Living Omnimedia Inc. (MSLO). J.C. Penney knew that such a contract existed, and nonetheless induced MSLO to materially breach that contract.

"Billions of dollars of sales are involved," the filing went on to say. "J.C. Penney has no justification for its unlawful conduct, which is transparently designed to eliminate the competitive advantage that Macy's enjoys in the area of home products by virtue of its exclusive relationship with MSLO."

In a statement also given to HFN, Macy's said, "On July 13, the Supreme Court of the State of New York issued a preliminary injunction preventing MSLO from allowing the manufacture, marketing, distribution or sale of any Martha Stewart-branded product in these categories through another retailer. The lawsuit...seeks to expand injunctive relief to J.C. Penney and seeks to have J.C. Penney pay damages for its tortious interference with the contract between Macy's and MSLO."

The statement added that Macy's plans to continue to support the Martha Stewart Collection product sold under its MSLO contract, which currently extends through January 2018.

As of this morning, J.C. Penney had not responded to requests for comment.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money