NEW YORK CITY, N.Y., Feb. 13 (UPI) -- Martha Stewart's company said Friday it would appeal Kmart's attempt to pay less in royalties for exclusive rights to sell Martha Stewart Living products.
Kmart filed a complaint in U.S. Bankruptcy court in Chicago on Wednesday charging Martha Stewart Living Omnimedia was forcing Kmart to pay too much in royalties.
MSLO said Kmart is seeking to reduce its royalty payments by approximately $4.5 million to $47.5 million for the year ending Jan. 31, 2004, and to reduce advertising spending by about $1 million to $2 million a year.
"MSO believes Kmart's interpretation is inconsistent with the terms of our long-standing contract, and therefore intends to defend this action and enforce the terms of the contract," the company said.
