Dive Summary:
- According to a Friday report by Reuters, J.C. Penney CEO Ron Johnson testified in court that the company decided to move forward with its Martha Stewart deal despite knowing it conflicted with Macy's deal with Stewart.
- On Friday, attorneys representing Macy's presented New York state court with an e-mail from Johnson to Penney board member Steven Roth which states that Stewart would have to break her Macy's deal if Johnson was going to "pull off" a deal with her.
- Johnson denied meaning to break the contract, saying that counsel advised him the deal between Macy's and Stewart had a loophole that allowed Penney stores to house Martha Stewart boutiques.
From the article:
... The testimony was part of the suit brought by Macy’s against Penney and Martha Stewart Living Omnimedia Inc., claiming that the pair’s deal to launch Martha Stewart boutiques in Penney stores breached Macy’s own exclusive contract with Stewart to sell products at Macy's. ...
