Oct
22
J.C. Penney to End Martha Stewart Deal Early, Return Shares
Posted in: Uncategorized
In December 2011, Ron Johnson hailed J.C. Penney Co.’s $38.5 million investment in Martha Stewart Living Omnimedia Inc. as “transformational.”
Almost two years later, Mr. Johnson is gone as CEO, and J.C. Penney yesterday rolled back an agreement tied to the investment in the homemaking maven’s company. Under an amended deal, the partnership will end in June 2017 instead of 2021 and the parties will stop making products in categories at the center of a lawsuit brought by Macy’s Inc.
J.C. Penney, based in Plano, Texas, will also give back the 11 million shares it bought for $3.50 each and the right to board representation at Martha Stewart Living, it said in a statement yesterday.
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