Martha Stewart Living Omnimedia Inc., whose founder is serving time in prison for obstructing justice, is closing its money-losing catalog business in February.
The company, announcing what it called "our final sale" on its website, offered no explanation for the action. A spokeswoman for New York-based Martha Stewart Living, Elizabeth Estroff, said the closure was part of a previously announced plan.
The company's Internet/Direct Commerce unit, including its catalog and website operations, was losing money even before Martha Stewart's legal troubles began, said Dennis McAlpine, an independent analyst based in Scarsdale, N.Y.
"A lot of the customers that Martha Stewart had probably weren't Internet users in the beginning," McAlpine said. "If you were an Internet customer, you could go to Kmart and get the stuff. A lot of the customers just went to Kmart."