Macy's Complains of "Hostage" Situation with Martha Stuart

While designer collaborations are usually a positive presence in the marketplace, it seems Macy’s is having major problems in their partnership with Martha Stewart Living Omnimedia.

According to court papers filed this week, the major department store is calling foul on Stewart’s brand for distributing their wares to JC Penney Co. against contractual stipulation.

A rep for Macy’s declared, "MSLO's new assertion that Macy's has breached the agreement is being made by MSLO in bad faith, is manufactured out of whole cloth, and is by all appearances nothing more than a tactic dreamed up by MSLO's lawyers to improve MSLO's litigation or settlement posture."

"Replacing MSLO realistically would require at least 16 to 18 months of substantial work by Macy's, tens of million of dollars, and the effort of hundreds of Macy's employees."

"Simply put, until this court is in a position to issue a final judgment declaring that Macy's exercise of the renewal option was effective, MSLO is holding Macy's hostage."

The Martha Stewart Living Omnimedia camp has yet to comment on the situation.