NEW YORK -- J.C. Penney, which is struggling with big losses and steep sales declines, could face another challenge: empty shelves.
New York State Supreme Court Judge Jeffrey Oing told Penney's attorneys Monday that the chain took a risk by ordering towels, cookware and other products from the company that home diva Martha Stewart founded. In fact, Oing said he could force Penney to stop the products from heading to the shelves this spring even as they come off the docks.Oing said he will hear oral arguments Friday over the issue of whether Penney can sell goods like towels designed by Martha Stewart Living that are covered by Macy's exclusive agreement but are not sold under the Martha Stewart brand name.The judge's statements came during the start of the third week in a trial that pits J.C. Penney against Macy's over their relationship with Martha Stewart Living Omnimedia.Penney, in a statement released Monday, said it would not have proceeded with its agreement with the company if it thought it would interfere in any way with Macy's pact with Martha Stewart Living.Have more to add? News tip? Tell us
