Judge Rules JCP Interfered with Macy’s in Martha Stewart Deal

Macy’s has won its case against JCPenney over the Martha Stewart-branded home goods collections.

In his decision, Justice Jeffrey K. Oing ruled that JCPenney interfered with the agreement Macy’s had with Martha Stewart Living Omnimedia. Justice Oing ridiculed the behavior of JCPenney’s executives, including former CEO Ron Johnson, writing, “At best one can only describe such conduct as adolescent hijinks in the worst form.” However, he stopped short of awarding Macy’s Inc. punitive damages. “Mr. Lundgren and Macy’s, the loyal and unsuspecting partners, have been vindicated,” he continued, pointing to JCPenney’s firing of Johnson, the “public humiliation” of its board and the “colossal and abject retail failure” of its strategy.

Martha Stewart’s Macy’s collection launched in 2006 and her JCPenney shop-in-shops launched five years later. Macy’s sued both Stewart and JCPenney and settled with Stewart in January.

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