JC Penney's emergency plan
Fearing it will be barred from selling Martha Stewart-branded home goods, the retailer is working with Asian suppliers to restock.
Call it Plan B for J.C. Penney's (JCP) home goods aisles.
The beleaguered retailer has pieced together an emergency plan for bed linens and other home products, fearing that it will be legally blocked from selling Martha Stewart-branded goods.
The deal with Martha Stewart Living Omnimedia (MSO) was the brainchild of Penney CEO Ron Johnson, and so far has led to only headaches, with a lawsuit from rival retailer Macy's (M) claiming that it, too, has a contract with Stewart.
Penney executives are concerned that it will be barred by a New York judge from selling the Martha Stewart line, potentially leading to empty shelves. Its plan B is to get a pipeline of "emergency goods" from Asian suppliers, which would likely be sold under Penney's old labels, reports The New York Post.
But Penney will still be facing big problems, even with the emergency shams and comforters winging their way to U.S. stores.
For one, the goods would take an additional 75 days to 90 days to manufacture and deliver, according to The Post. That means the store would face yet another potential delay in its home-goods revival.
Penney had originally hoped to debut the new Stewart products on March 1, but ended up delaying the new items until Mother's Day, or May 12, as noted by Home Textiles Today.
Also, Penney would take a "massive" loss on the inventory it had already produced with Martha Stewart, according to the Post.
Penney went back to court Monday to resume the trial over whether Macy's has the exclusive right to sell products with Martha Stewart's name, according to Reuters. The two sides had been ordered by the judge into mediation, but no deal had been struck as of Friday, according to the report.
Meanwhile, Penney is promoting Martha Stewart-designed products on its website, noting that the new products will be available "in stores spring 2013."
"Welcome to a home you'll love, because only you and Martha could create it," Penney's site notes.
That might be amended to add, "and only if a judge allows it."
Follow Aimee Picchi on Twitter at @aimeepicchi.
Yea,go ahead and go to Asia or Timbuktu. Penny's is finished.End of story.
What a Hag, the only winner in this deal is the B--ch from Ct., how can Martha's company sign 2(TWO) deals to market her products when one of them is exclusive and somehow Martha's company didn't know of this exclusive deal with Macy's, hmmmmmmmmmmmmmmmmmmmmmm????
Oh well, sure does reek of insider deals afoot to me, Martha Stuart junk sold to Penny/Macy Stuarts company makes a bundle of moola and laughs all the way to the bank, meanwhile back on the farm Penny is scrambling to find other Junk to replace the Stewart Junk so their shelves aren't empty and have a decent selection of Junk to choose from, this is so confusing......
I can't believe how this company and this stock are being manipulated.
Why shop at J.C. Penny when KFC finally has boneless chicken.
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A basic income policy can actually ensure a decent standard of living for everyone.
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