Macy's (M), J.C. Penney (JCP) Talks Over Martha Stewart (MSO) Stall

January 3, 2014 1:24 PM EST Send to a Friend
(Updated - January 3, 2014 2:47 PM EST)

Talks between retailers Macy's (NYSE: M) and JCPenney (NYSE: JCP) regarding a merchandising agreement with Martha Stewart Living Omnimedia (NYSE: MSO) are said to have come to a standstill.

The WSJ said Friday that Macy's and JCPenney have been in dialogue on and off over the last few months, but haven't been able to come to an accords over the amount of damages that should be awarded. Macy's is looking to recoup attorney's fee and lost profit due to Penney's pact with Martha Stewart Living.

The halt makes it more likely that a judge will need to decide the outcome of the case.

JCPenney aimed to change the tides last October when it cut the length of its original 10-year contract with Martha Stewart Living and also narrowed the scope of product that would be sold in its stores.

On Thursday, Macy's and Martha Stewart Living entered a settlement agreement, though terms were not disclosed.

Currently, no discussions between Macy's and JCPenney are taking place and it's unlikely that a solution will be met.

Shares of Macy's and JCPenney are positive, while Martha Stewart Living is lower Friday.


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