Trend Watcher: Martha Sells

Ellen C. Wells

Martha Stewart Living Omnimedia (MSLO) has struck a deal with Sequential Brands to sell the company for $6.15 per share in cash and stock. The company founded by the chambray-wearing lifestyle guru in 1997 will now be owned by a retail licensing group whose brands also include Jessica Simpson, Ellen Tracy and Avia. Martha Stewart (the person, not the brand), will maintain creative control over the product that bears her name.

Said Sequential’s CEO Yehuda Shmidman, “Martha Stewart’s impact around the world is staggering and the empire she founded is unmatched in its industry. In fact, research shows that the Martha Stewart brand has 96% awareness among women in the U.S. and seven out of 10 women say that Martha has and does influence the way they think about, organize and manage their homes. Looking ahead, we believe that we can leverage our global activation platform at Sequential in partnership with Martha and her team to develop the next chapter of growth for the Martha Stewart brand.”

The company’s home goods products now rank among its most critical holdings, generating 40% of its revenue in 2014. However, MSLO has reported annual losses for the past several years. For its most recent quarter, revenue was down 49% over the same period last year. GP