Beleaguered retailer JCPenney Co. Inc. and Martha Stewart Living Omnimedia Inc. on Monday revealed they have revised their partnership agreement that was at the center of the legal battle with department store Macy’s.
The new agreement dramatically minimizes the Penney’s-MSLO deal. And features a significantly limited set of product categories and a much shorter term ending on June 30, 2017, instead of the original 2021.
Under the new deal, MSLO will continue to design Martha Stewart branded products for Penney’s however the designs will be limited to the following categories: window treatments and hardware, rugs, lighting, holiday and celebrations.
MSLO will receive design fees, guaranteed minimum royalties and the 11 million shares of MSLO Class A common stock that Penney’s currently owns. Penney’s paid $38.5 million for the MSLO shares.
“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,” said Penney’s chief executive officer Myron “Mike” Ullman 3rd.