NEW YORK — Martha Stewart Living Omnimedia is “essentially holding Macy’s hostage” by saying that its pact with the department-store chain expires in January 2013, Macy’s said in court papers in their contract dispute.
Macy’s sued in January to stop New York-based Martha Stewart Living from executing an agreement to sell merchandise in J.C. Penney stores. Macy’s, based in Cincinnati, said it has the exclusive right to sell Martha Stewart-branded products in certain categories.
Martha Stewart Living fired back last week, accusing Macy’s of breach of contract and saying the retailer has stocked and priced Martha Stewart products in a way that favors Macy’s private-label brands. Martha Stewart Living also said Macy’s couldn’t have exercised a five-year renewal option on the deal between the two companies because of the breach.
“The uncertainty created by MSLO’s breach has put Macy’s in an inequitable and untenable position,” Macy’s said in papers filed Tuesday in New York state Supreme Court. Bloomberg News
