Do NOT mess with Martha! MSLO has filed an appeal to the judge’s preliminary injunction, claiming there was an “erroneous interpretation” of the agreement with Macy’s, and that there was also “an incorrect application of the legal standards for a preliminary injunction”–basically, that there can be no damages, as no products have been sold at J.C. Penney.
Further, MSLO claims that, notwithstanding the new partnership with J.C. Penney, MSLO has continued to work diligently with Macy’s in “good faith” and pointed to good sales figures for the Martha Stewart Collection items as evidence that there have been no damages.
It is interesting to note that when Macy’s signed their contract with MSLO in 2005, they didn’t seem to have a problem with the fact that Martha’s contract with Kmart ran through January 2010. For a time, Martha Stewart items were available in both stores, and were profitable ventures for both companies. FOMs: Wouldn’t you love to see Martha’s products for sale at both Macy’s AND J.C. Penney? Now, THAT would be a good thing!
Martha Stewart Living argued in the court documents filed today that sales under the J.C. Penney agreement aren’t slated to start until March and Macy’s hasn’t shown it’s being harmed by preparations.
“The record in fact shows that since the announcement of the JCP agreement, MSLO has continued to work in good faith with MMG, sales of Martha Stewart collection items at Macy’s have not declined, and overall Macy’s sales have increased considerably,” lawyers for Martha Stewart Living said in the court documents.