Macy’s sues Martha Stewart Living for breach of contract
New York City — A New York state Supreme Court filing on Monday disclosed that Macy’s Inc. is suing Martha Stewart Living Omnimedia Inc. for breach of contract after Martha Stewart set up a new deal last December with J.C. Penney to sell products at its stores.
According to Macy’s, Martha Stewart Living granted it product exclusivity under a 2006 agreement. J.C. Penney, which acquired a 16.6% stake in the company in December, plans to open Martha Stewart Living in-store shops, beginning in 2013, which violates that exclusivity, said Macy’s.
Macy’s is seeking a preliminary injunction stopping Martha Stewart from violating the contract. It claims that a renewed contract with Martha Stewart extended its exclusivity until January 2018.
New finance leader named at Target
MINNEAPOLIS — Target has promoted John Mulligan to the position of EVP and CFO, effective April 1. Mulligan currently serves as SVP finance. He replaces Doug Scovanner, Target’s EVP and CFO for the past 18 years, who announced his retirement in November 2011, effective March 31.
Mulligan has been with Target for 16 years serving in various leadership roles in finance, Target.com and human resources. In his most recent role, Mulligan was responsible for treasury, internal and external financial reporting and financial operations. As EVP and CFO, Mulligan’s responsibilities will include treasury, internal and external financial reporting, financial planning and analysis, financial operations, tax, assurance, investor relations and flight services.
"John brings significant financial experience and strategic perspective to this new role,” said Steinhafel. “I am confident that he will sustain the financial discipline and stewardship Target has enjoyed during Doug’s tenure and believe John’s strong leadership and record of performance make him a valuable addition to our Target executive team.”
Target also announced that Doug Scovanner, following his retirement as EVP and CFO on March 31, will remain with the company in a part-time capacity until early November 2012. In this role, Doug will continue to support Target’s board and executive leadership in the development and execution of corporate strategy, including remaining engaged in external relationships with investors, financial institutions and ratings agencies, which will ensure a seamless transition of responsibilities to Mulligan.
Following Scovanner’s retirement and to underscore the company’s commitment to pursue a sale of its credit card receivables on appropriate terms, Terry Scully, president Target financial and retail services, will report directly to Gregg Steinhafel, chairman, president and CEO of Target.
Earlier this week, Target announced that it would be in its best interest to hold off selling its credit card portfolio.
Hudson’s Bay Co. ‘Taylors’ a new deal
NEW YORK — Hudson’s Bay Company, the Canadian retail conglomerate, and one of the oldest department-store operators in the world, announced Tuesday that it has completed its acquisition of its affiliate, Lord & Taylor Holdings, LLC, the U.S. department-store company.
According to a company press release, Hudson’s Bay will now operate the two leading retail banners in North America, The Bay and Lord & Taylor. Prior to the transaction, Hudson’s Bay Company and Lord & Taylor were side-by-side affiliate entities.
Richard Baker will remain governor and CEO of the newly restructured company, with Donald Watros continuing as COO. Bonnie Brooks, currently president and CEO of The Bay, will become president of the Hudson’s Bay Company.
Baker said, "We are fortunate to have both Don Watros and Bonnie Brooks round out the leadership team of the Hudson’s Bay Company. Don’s operational and financial expertise has been instrumental in contributing to both The Bay and Lord & Taylor’s year-over-year profitability despite the poor economic environment around the globe."
Lord & Taylor and The Bay will maintain their distinct identities and nameplates while leveraging the merchandising strengths of the organizations to improve and accelerate their continued growth, the company stated.
If those changes mimic those that have been implemented at The Bay stores in Canada, as Brooks referred to during a presentation at the National Retail Federation convention in New York earlier this month, than U.S. shoppers should expect to see more modern store layouts, increased designer merchandise and partnerships with big-name fashion labels.
Baker also noted, "We look forward to an even stronger 2012 with this new leadership structure in place and the strength of two dynamic teams coming together and leading the HBC into the future."
Brendan Hoffman president and CEO of Lord &Taylor will be leaving the company to pursue another opportunity.
As part of the transaction, Hudson’s Bay invested $427 million in Lord & Taylor, which used the proceeds entirely to reduce corporate debt.