CHICAGO, Feb. 17 (UPI) -- Kmart is suing Martha Stewart's company in a Chicago court, accusing her company of demanding excessive royalties on sales at its stores.
Specifically, the suit alleges that a unit of Martha Stewart Living Omnimedia is overstating the royalties it should recoup from sales of Martha Stewart branded merchandise, the Wall Street Journal reported Tuesday.
The discount retailer, based in Troy, Mich., alleges in the suit it filed last Wednesday that the Martha Stewart Living Omnimedia unit has breached an implied agreement to deal with Kmart "in good faith."
Kmart emerged from bankruptcy last May with about 1,500 stores, about 600 less than when it filed for protection against its creditors.
Now Kmart and Martha Stewart are tussling over exactly how much the retailer owes in royalties.
Martha Stewart Living took the dispute public Friday with a news release, complaining that Kmart is trying to reduce its royalty guarantees for the past year by about $4.5 million, to $47.5 million.
That same day Kmart struck back, arguing its adversary's news release misrepresented the retailer's position.
