April 8, 2013
The case between retailers Macy's and JC Penney is heading to court after the failure of mediation attempts. The companies are scheduled to appear in New York State Court beginning today, according to a Reuters report.
The lawsuit between the two retailers stems from a plan by JC Penney to sell certain Martha Stewart-branded housewares. The court will determine whether Macy's has an exclusive right to sell those products.
According to the Reuters report, the lawsuit has affected attempts by JC Penney to improve its fortunes, limiting what the retailer can offer in new in-store boutiques that feature Martha Stewart-branded merchandise.
Macy's filed suit against Martha Stewart Living Omnimedia alleging that the deal it signed with JC Penny is in breach of its exclusive agreement to sell bedding, cookware and bath items.
Martha Stewart items are the number-one home item sold by Macy's, Reuters reported.
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