Hailed by Ron Johnson as a 'transformational' investment back in 2011, the USD38.5 million investment by JC Penney in Martha Stewart Living Omnimedia Inc has changed dramatically since then. Johnson was unceremoniously removed as JCPenney's CEO and now, the company has rolled back an agreement tied up to the said 'transformational' investment.
Under the amended deal, the partnership between the two firms would end by June 2017 instead of June 2021 and the parties would desist from making products in categories that were central to the lawsuit filed by Macy's Inc against the two.
The Plano, TX based beleaguered retailer would return 11 million shares it had purchased in the homemaker maven's company as well as the board seat alloted to it.
Macy's filed a suit against the two, claiming exclusivity in selling Martha Stewart designed items such as bedding, bath and cookware. After the settlement of the suit, JCPenney rebranded the goods in the category as "JCP Everyday" product line. This again was subject to another suit from Macy's, claiming these were the designs from the Stewart company and thus covered under the exclusivity agreement.
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