Troy, MI & New York, NY, Apr. 26--Kmart and Martha Stewart Living Omnimedia announced today that the companies have reached an agreement that serves the best interests of both companies by extending and amending several terms in their long-term distribution contract for the Martha Stewart Everyday brand label.
The revised agreement better aligns the two companies' mutual business interests by extending the Martha Stewart Everyday partnership two years, through 2009; expanding the scope to several new product categories including ready-to-assemble furniture; eliminating the product category minimum guarantee but not the aggregate minimum guarantee features of the contract; and making other adjustments that, taken as a whole, benefit both companies.
In conjunction with this amended agreement, Kmart also announced today that it will withdraw the lawsuit--pertaining to the interpretation of contractual language in the original contract--filed by Kmart against MSO IP Holdings Inc. in Bankruptcy Court in February 2004.
"We are pleased to have extended and deepened our relationship with Martha Stewart Living Omnimedia. Kmart is committed to providing the highest quality and value-driven products to our millions of loyal customers nationwide, and the Martha Stewart Everyday brand is a great example of this commitment," said Julian C. Day, President and CEO of Kmart. "MSO is an extremely valued brand partner and we look forward to continuing that relationship on terms that best benefit both companies."
"This is an exciting development," said Sharon Patrick, President and CEO of Martha Stewart Living Omnimedia, Inc. "We are delighted that Kmart will continue to be a foundation partner for MSO throughout the decade, and that our two companies have found mutually agreeable ways to improve upon our beneficial relationship. Reaffirming this highly successful partnership is due in large part to our confidence in the strength and acumen of Kmart's new management team.
"We know that Martha Stewart Everyday's new and existing product offerings will continue to deliver the perfect combination of inspiration, high-quality, style, and utility that our customers love and expect from us."
Kmart sells Martha Stewart Everyday Home, Garden, Holiday, Colors, Kitchen, Keeping and Decorating, Candles, Baby, and accessory product lines. All collections, with the exception of Martha Stewart Everyday Colors, are available exclusively at Kmart and online at kmart.com.
