Martha Stewart Settles Legal Dispute With Macy's - Update

(RTTNews) - Martha Stewart Living Omnimedia, Inc. (MSO) Thursday announced that it has resolved the legal dispute with department store chain Macy's Inc. (M), related to exclusive rights to its home products. The firm said the terms of their settlement are confidential, and will not be disclosed.

Martha Stewart, an integrated media and merchandising company, also noted that the terms of the settlement are not deemed to be material to the firm.

"We can now return our focus to what we do best - bringing beautifully designed, high quality, affordable products to consumers nationwide. We look forward to a continued, successful partnership together," Martha Stewart said.

Macy's had alleged Martha Stewart of breaching contract by making a partnership with department store chain J.C. Penney Co., Inc. (JCP) in December 2011, and selling certain goods at J.C. Penney.

It was in October 21, 2013, that Martha Stewart and J. C. Penney announced a revised commercial agreement covering the companies' licensing and design partnership. The amended agreement covered a more focused range of product categories over a shorter period of time than the original agreement, dated December 6, 2011.

Under the amended agreement, Martha Stewart will continue to design Martha Stewart branded products for JCPenney in categories of window treatments and hardware, lighting, rugs, holiday and celebrations. It will receive design fees, guaranteed minimum royalties and the 11 million shares of Martha Stewart Class A common stock that JCPenney currently owns.

MSO closed Tuesday's regular trading at $4.20 on the NYSE, while M ended at $53.40.