Monday October 21st, 2013 - 4:07PM
Martha Stewart Living Omnimedia, Inc. and J.C. Penney Company, Inc. today announced a revised commercial agreement covering the companies' licensing and design partnership.
The amended agreement covers a more focused range of product categories over a shorter period of time (through June 30, 2017) than the original agreement, dated December 6, 2011. Under the amended agreement, MSLO will continue to design Martha Stewart branded products for JCPenney in the following categories: window treatments and hardware, lighting, rugs, holiday, and celebrations. MSLO will receive design fees, guaranteed minimum royalties and the 11 million shares of MSLO's Class A Common Stock that JCPenney currently owns. In addition, JCPenney will no longer have representation on MSLO's board of directors.
"We are pleased to announce this revised commercial agreement," said MSLO founder and non-executive chairman Martha Stewart. "We are designing excellent products for 2014, and we look forward to seeing them in stores and online at jcp.com."
Mike Ullman, CEO of JCPenney, said, "We are happy to be moving forward and continuing to provide our customers with quality products from the MarthaHome collection, which includes MarthaWindow, one of our best-selling lines of window treatments."