J.C. Penney buys stake in Martha Stewart, forms 10-year retail partnership
The Texas-based chain spent $38.5 million, or $3.50 a share, buying a 16.6% share in Stewart’s Martha Stewart Living Omnimedia Inc. Penney will also have a presence on Martha Stewart Living’s board.
Inside the department stores starting in February 2013, products designed and curated by the domestic guru and sourced by Penney will be showcased in distinct retail spaces, the companies said. A related e-commerce site will launch the same year.
Martha Stewart Living is expected to reap more than $200 million in revenue over the life of the deal. The company already has products in stores such as Home Depot and Penney competitor Macy’s.
In October, Penney spent $267.5 million buying the Liz Claiborne brands and fashion-jewelry brand Monet. The jewelry is expected to show up in Penney stores by August 2012, while the chain has also ordered up exclusive Claiborne brands for its stores.
-- Tiffany Hsu
Photo: Martha Stewart. Credit: NBCUniversal