Department store litigation under way
American Macy’s Inc is of the opinion that Martha Stewart Living Omnimedia Inc. has been breaching a contract by signing an agreement to sell certain products to J.C. Penney Company.
Macy’s is seeking a preliminary injunction in order to stop Martha Stewart from such a contract violation. Martha Stewart Living agreed to grant Macy’s the exclusive right to manufacture and sell Martha Stewart branded products in certain exclusive product categories. This has not prevented that another agreement by Martha Stewart with J.C. Penney and it is seemingly falling into Macy’s exclusive product categories.
Competition is heating up in American retailing and it will be interesting if this litigation has to be ruled by a court or if it can be settled outside the court.