Relations between Macy’s Terry Lundgren and Martha Stewart (above) are beginning to thaw, raising hopes their feud may soon come to a end. (Anthony J. Causi)
Martha Stewart and Macy’s CEO Terry Lundgren are talking again, but they haven’t kissed and made up yet.
Three weeks into their courtroom drama, the pair had an afternoon phone chat yesterday in an effort to iron out their differences — but it fizzled, leading the judge to order them, like warring spouses, to settle their beef through mediation.
It was their first conversation since Dec. 6, 2011, when Stewart phoned Lundgren to tell him about a secret licensing deal she had struck with JCPenney — despite already having a similar deal with Macy’s.
That was one day before the Penney pact was announced — and Lundgren hung up on her.
In a statement, Martha Stewart Living Omnimedia called the latest phone exchange “productive.”
“We view [yesterday’s] actions as a positive step forward and welcome a prompt and fair resolution,” an MSLO spokeswoman said.
New York state Judge Jeffrey Oing, who had been slated to hear arguments today on whether to extend an injunction preventing Penney from selling Martha Stewart products, ordered the parties to find a mediator as soon as today.
With no truce in sight, lawyers for Penney said the retailer will keep a new line of home goods from Stewart’s company off its shelves until at least April 8, when the court will reconvene if a settlement isn’t reached.
Legal experts say time is likely on the side of Macy’s, as MSLO is scrambling to launch a line of home goods at Penney stores by May.
Because of the legal challenge from Macy’s, Penney has taken the precaution of keeping Stewart’s name off the goods, which include bedding and bath products, kitchenware and dinnerware.
Oing signaled this week that even that precaution may not be enough to protect the new line from Macy’s legal threat to keep the goods off shelves permanently.
“That’s a risk your client took,” Oing said in response to a Penney lawyer’s plea.
Earlier yesterday, former MSLO Chairman Charles Koppelman testified he was rebuffed by the homemaking matriarch and her board of directors when he suggested notifying Lundgren about the deal with Penney.
“I wanted to offer Mr. Lundgren at Macy’s the opportunity to do the same deal that JCPenney was proposing to the company,” said Koppelman. “Their view was that this was something I should not do.”
In addition to a 10-year, $200 million distribution deal for home goods, Penney agreed to buy a 17-percent stake in Stewart’s namesake company for $38.5 million.
Yesterday, Oing said he “would have no problem deciding this case,” and that “not everybody’s going to be happy about it.”
“I still believe we live in a free-market society and the best decisions are made by the business people,” Oing told the courtroom.
The judge lately has made comments from the bench that signaled he might favor Macy’s in the case.
But yesterday he warned lawyers and reporters not to draw any conclusions.
“They may have prevailed on what they call the proverbial battles,” Oing said of Macy’s. “But ultimately, that’s not necessarily the same thing as winning the war.”