JC Penney buying stake in Martha Stewart Living for $38.5M in effort to revive its brand |
| Washington Post - Dec 7, 2011 |
J.C. Penney Co. is buying a minority stake in Martha Stewart Living Omnimedia Inc. for $38.5 million, the latest move by the department store to attract new customers and perk up lackluster sales.
Penney is acquiring a 16.6 percent stake in the media and merchandising company. The Plano, Texas, company will create mini-Martha Stewart shops within its department stores and a joint website.
The deal, announced Wednesday, comes at a time when both brands are aiming to revitalize business. Penney recently brought on former Apple Inc. executive Ron Johnson as CEO. Johnson, who joined the company’s board in August, took over merchandising and marketing responsibilities on Nov. 1.
Johnson, who will assume the remaining CEO functions on Feb. 1, has said he wanted to “re-imagine” the department store chain. As for Martha Stewart, it has grappled with declines in print advertising revenue and fierce competition from other websites that also offer recipes and other lifestyle information.
Read Full Article from Washington Post
- Posted: 2011-12-07 11:31:47
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