JCPenney will be allowed sell to Martha Stewart-designed products in stores as long as they don't bear her name, a judge ruled today.
" Today's decision allows Penney's to unpack warehouses filled with unbranded, Stewart-designed goods, and begin selling them," Steigrad reported. The department store won't be allowed to sell branded goods, which JCPenney had previously agreed to.
The trial will continue next week, with a judge deciding the long-term outcome of the line. For now, JCPenney will be able to sell the estimated $100 million of Martha Stewart products that are currently sitting in warehouses.
Macy's said it plans to appeal the decision, although JCPenney CEO Mike Ullman was reportedly seeking a truce earlier this week.
Leaked details of that proposed settlement revealed that JCPenney would get rid of its 10-year, $200 million contract with Stewart. However, JCPenney asked to be able to sell the Martha Stewart products it already had available for a set amount of time, like six months.
Macy's, which has had a deal with Stewart for several years, sued her company for breach of contract shortly after she announced the JCPenney line. The department store also sued competitor JCPenney .
The companies spent several weeks in mediation, but were unable to reach an agreement.
"I was completely shocked and blown away," Lundgren said. "I was literally sick to my stomach."
Stewart claimed in her testimony that Macy's didn't give her the influence she was seeking, shooting down ideas she had for luxury bath and bridal crystal lines.
The line is expected to be worth up to $500 million for Stewart, whose own company has struggled financially in recent years.
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