J.C. Penney Changes Martha Deal

Martha-StewartBeleaguered 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.

SOURCE: WWD

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.