Martha Stewart and Kmart are officially splitting up.
Stewart’s company, Martha Stewart Living Omnimedia Inc., yesterday said it was unable to reach an agreement that would have allowed its partnership with Kmart to continue. As a result, they will part ways in January.
MSLO’s statement comes less than a month after Stewart, during an interview on CNBC, groused that Kmart, which is controlled by Eddie Lampert’s Sears Holdings, had let her line of home products “deteriorate.”
However, yesterday Stewart was backing off those comments, saying she wishes “our friends at Kmart and Sears Holdings all the best,” and adding, “To the extent my recent comments were taken by anyone to be inconsistent with this sentiment, that was not my intent.”
Last year, revenue from the “Martha Stewart Everyday” line of goods at Kmart accounted for 43 percent of revenue at MSLO’s merchandising division, but Kmart last year also drastically cut its royalty payments to MSLO.
Shares in MSLO fell 19 cents to $6, while Sears’ stock slipped $1.33 to $70.08.