Macy’s Incorporated Contract Violated By Home Goods Giant..

Macy’s Incorporated Contract Violated By Home Goods Giant..

Pic-04132013-004This past Thursday, Macy Incorporated had pointed out a contract violation on the part of Martha Stewart‘s company that designs certain products for J.C. Penney Co Inc.

Judge Jeffery Oing’s ruling  could affect the ability for J.C. Penney to continue to sell Martha Stewart products that brands it’s label name.

So today was the day for the decision to be made by Oing, pushing the judicial powers of the Supreme Court to either “allow” or “not allow”  for the labels to be used.

J.C. Penney technically is banded from using their signature labels on Martha Stewart based packaged products, which was a result that manifested due to a preliminary injunction.

So what Preliminary Injunction means is that, the court will make a final determination of the issues which are hammered out in a legal case. In turn it will restrain a party from going ahead with a course of conduct or compelling a party to continue with a course of conduct until the case is properly decided.

So to put it in a nutshell, J.C. Penney can still sell home goods and products, as long as they do not carry the Martha Stewart name on them.

Pic-04132013-003Chief Executive Ron Johnson had concocted a plot to put J.C. Penney back on the map in terms of sells and turning huge profits, and that involved selling Martha Stewart – home good products that would brand the “JCP Everyday” label.

Judge Oing had some rather sour words for former J.C. Penney Chief Executive Ron Johnson, which whom he pointed out as the “architect” of the dispute.

Johnson efforts to sell the Martha Stewart products failed to meet expectations for J.C. Penney in 2012, as annual sales fell 25 percent short.

Johnson had got fired as a result for his orchestrated scheme, and the franchise decided to bring in financial advisers to protect it’s assessments and revenues.

But Macy’s Inc. went after J.C. Penney andMartha Stewart Living Omnimedia Inc.”

And that was because of the two companies that decided to open “Martha Stewart” brand stores in J.C. Penney without consulting with Macy’s Inc., which lead to the legal case in court.

Ted Grossman a lawyer for Macy’s, was pushing for an appeal to keep the label sticker of J.C. Penney’s brand from showing up on the Martha Stewart home decor products.

But J.C. Penney has already made the plans for the month of May, to start selling the popular home decor products.

Despite the fact that Macy’s Inc. was under a contract with Martha Stewart – home goods from 2006 until 2018.

The total revenue potential for J.C. Penney in this could be well over $50 million  in sells.

Judge Oing said, “This is a business deal that you should not have courts getting involved in, it’s getting to the point where the clock can’t be turned back. The ship is ready to sail.”

Macy’s Incorporated Contract Violated By Home Goods Giant..

(By: Jaye Irons)

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