Westports Martha Stewart, on trial for stock fraud, is now the target of a suit from Kmart Corp. which says her company is overcharging for the exclusive rights to sell housewares and other product bearing StewartҒs name.
Martha Stewart Living Omnimedia Inc. said today that Kmart’s interpretation of their contract would cut what it gets from Kmart by millions of dollars and said it would contest Kmart’s court filing.
Stewart stepped down last June as chairman and CEO of Martha Stewart Living but remains its biggest stockholder.
Kmart, which emerged from bankruptcy in May, has stood by its Martha Stewart Everyday line, touting the brand as one of its main assets despite Stewart’s legal troubles.
In a complaint filed Wednesday in U.S. Bankruptcy Court in Chicago against a subsidiary of Martha Stewart Living Omnimedia, Kmart said the company has sought more in royalties from the retailer than their contract calls for.
Kmart is accusing subsidiary MSO IP Holdings Inc. of acting in bad faith and is seeking unspecified damages.
