Martha Stewart Living Omnimedia, Inc. and J. C. Penney Company, Inc. announced a revised commercial agreement covering the companies' licensing and design partnership.
The amended agreement covers a more focused range of product categories over a shorter period of time (through June 30, 2017) than the original agreement, dated December 6, 2011. Under the amended agreement, MSLO will continue to design Martha Stewart branded products for JCPenney in the following categories: window treatments and hardware, lighting, rugs, holiday and celebrations.
MSLO will receive design fees, guaranteed minimum royalties and the 11 million shares of MSLO Class A Common Stock that JCPenney currently owns. In addition, JCPenney will no longer have representation on MSLO's Board of Directors.
"We are pleased to announce this revised commercial agreement," said Founder and Non-Executive Chairman Martha Stewart. "We are designing excellent products for 2014, and we look forward to seeing them in stores and online at jcp."
Myron E. (Mike) Ullman, III, Chief Executive Officer of JCPenney, said, "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."