| NEW YORK, April 22
NEW YORK, April 22 J.C. Penney Co Inc
isn't waiting for a final court decision.
The retailer has begun to sell the Martha Stewart "JCP
Everyday" line of home goods, even while a court battle with
Macy's continues over the domestic diva's home goods.
"As of today, those products are on the floor and online,"
Paul Rutenis, general merchandise manager of J.C. Penney's home
department, said on Monday in testimony in New York State
A judge ruled earlier this month that J.C. Penney could sell
certain Martha Stewart designed goods under the "JCP Everyday"
label, at least until an appeal by Macy's is decided. A ruling
on the appeal could come as early as this week.
Macy's claims it has the exclusive right to sell Martha
Stewart products in the cookware, bedding and bath categories
under a contract that runs through 2018.
J.C. Penney decided in September to manufacture the goods
under the "JCP Everyday" label after it was barred from selling
them under Martha Stewart's name last summer, Rutenis said.
Macy's also is seeking to block J.C. Penney from selling
certain goods under the "MarthaCelebrations" label that it says
violates the original ban, including a pitcher and champagne
Rutenis said the company would suffer "substantial harm"
during the spring 2013 season if it couldn't sell the already
manufactured items. An analyst has estimated the value of the
goods at $100 million.
Last week, J.C. Penney said it had borrowed $850 million
from its $1.85 billion revolving credit facility as it revamps
following the ouster of Chief Executive Ron Johnson. The
company's sales fell 25 percent last year.
Macy's sued after Martha Stewart and J.C. Penney announced a
partnership in December 2011. A trial started in February. J.C.
Penney and Martha Stewart Living Omnimedia, which also
was sued, are presenting witnesses this week.
The cases are Macy's Inc v. Martha Stewart Living Omnimedia
Inc, 650297/2012, and Macy's Inc v. J.C. Penney Corp,
652861/2012, New York State Supreme Court, New York County.