TROY, Mich., March 8 (UPI) -- Michigan-based Kmart is taking a wait and see attitude in its relationship with Martha Stewart in the wake of her federal conspiracy conviction.
The best-selling Martha Stewart Everyday line of merchandise from sheets and garden implements to Christmas ornaments and patio furniture helped Kmart Holding Corp. emerge from Chapter 11 bankruptcy last year. The struggling discount retailer must decide if millions of consumers will continue to buy products bearing the name of the disgraced domestic diva.
Stewart could be sentenced to up 18 months in federal prison for conspiracy, making false statements and obstructing justice in the federal investigation of her insider trading of Imclone stock.
The Detroit News said Kmart may have legal grounds to void its contract with Martha Stewart Omnimedia which runs through 2008. Martha Stewart-branded goods accounted for 5 percent of Kmart's total sales last year bringing in $1.5 billion.
Stewart stuck with Kmart through its 15-month bankruptcy.
