Department store giant Macy'sis going to court to block Martha Stewart Living's new deal with rivalJ.C. Penney.
In a suit filed Monday in New York State Supreme Court, Macy’s alleged that the deal, which will bring Martha Stewart products to Penney stores by early next year, violates a previous agreement handingMacy'sexclusive rights to sell certain branded products in its stores, Bloomberg reported.
J.C. Penneyspent $38.5 million last December acquiring a 16.6% share of the company founded by lifestyle guru Martha Stewart. Penney also inked a 10-year agreement to set up Martha Stewart mini-shops to peddle housewares within its own department stores.
However, Macy’s recently extended its deal with Martha Stewart Living to exclusively sell its branded products in categories such as cookware, kitchen utensils, and bed and bath items, Macy’s spokesman Jim Sluzewski said in an email. The current deal expires in January 2018.