New York, NY, Mar. 16--Martha Stewart resigned effective immediately from the posts of director and chief creative officer at the company she founded, Martha Stewart Living Omnimedia Inc.
Stewart will remain with the company as "founding editorial director," Martha Stewart Living said Monday in a prepared statement.
"Everyone at MSO recognizes the seriousness of Martha's situation and is deeply saddened," Sharon Patrick, the company's chief executive, said in the statement. "However, all of us also believe that the company and our constituencies benefit most if we are able to continue to take advantage of Martha's creative inspiration and capitalize on her prodigious skills and experience in the domestic arts--from cooking, to gardening, to crafts, to homekeeping."
Earlier this month, a jury in a federal court in New York found Stewart guilty on four felony counts of obstructing justice and making false statements to government investigators about why she sold shares of biotechnology company ImClone Systems Inc. in December 2001. Stewart plans to appeal the verdict.
Martha Stewart Living Omnimedia said it created the new position of founding editorial director--"a role that reflects our desire for Martha to continue to make an important contribution to our business."
The company's board said "the benefit of Martha's unique creative talents and contributions is in the very best interests of MSO and its shareholders."
The company expects Stewart to continue to provide inspiration for product design and development, write two pending books and provide input on the MSO brand through her new post.
The board plans "to identify a qualified person" to replace Stewart as a director.
"I am taking this action today because it is in the best interests of MSO and because I think it's the right thing to do," Stewart said in the company statement. "I am heartsick about my personal legal situation--and deeply sorry for the pain and difficulties it has caused our employees."
