Companies & Industries

The Feud: Macy's vs. JC Penney and Martha Stewart

A war over Martha.


The conflict
Macy’s recently took both Martha Stewart and JC Penney to court after Stewart signed a deal to sell her wares at the department store, despite still being under contract with Macy’s. Stewart said sales of her products at Macy’s have been flat; both chains claim Stewart’s line is crucial to their business.

The outcome
Strong words flowed throughout the trial. Stewart said her mind was “boggled” there was an issue, and that she was “flabbergasted” when Macy’s CEO Terry Lundgren hung up on her after she informed him of the JC Penney deal—a call Lundgren said made him “sick to my stomach.” Following a 12-day trial, in March the judge ordered all parties to enter mediation.