The Chicago tribune reports that while there were great rumblings about all the synergies that would been found when Sears and Kmart combined their operations, especially when it came to promoting and selling Martha Stewart’s product lines from an increased number of locations, there is nary a Martha Stewart product to be found in any Sears store.
The problem: Sears Holdings chairman Edward Lampert and Stewart “are negotiating over a modified contract that would allow the Martha Stewart Everyday line to be sold in Sears, sources close to both sides say. Lampert, the hard-nosed hedge fund operator who brought Kmart out of bankruptcy, wants to pay Stewart less than she is entitled to under the current agreement, according to a source familiar with the talks. Stewart is pushing for an extension of her current contract, which carries large financial guarantees.”
The problem: Sears Holdings chairman Edward Lampert and Stewart “are negotiating over a modified contract that would allow the Martha Stewart Everyday line to be sold in Sears, sources close to both sides say. Lampert, the hard-nosed hedge fund operator who brought Kmart out of bankruptcy, wants to pay Stewart less than she is entitled to under the current agreement, according to a source familiar with the talks. Stewart is pushing for an extension of her current contract, which carries large financial guarantees.”
- KC's View:
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We’re not Martha Stewart fans, but we would make this observation to Fast Eddie Lampert:
Outside of the investor class, almost nobody in this country has any idea who you are. A lot of people know who Stewart is, and buy her products.
We suspect if you manage to sour the deal with her, it won’t be long before Target or Wal-Mart gets into the act, offering her plenty of incentive to shift loyalties.
Which will leave you with only more unproductive real estate to sell off.
