NEW YORK — Martha Stewart is not abandoning troubled retailer Kmart Corp., but she said any bankruptcy reorganization "poses certain problems for us in terms of our brand" and her company's growth rate.
"If they do declare bankruptcy, it's up to them to tell us if they want us in the mix or not," Stewart told Newsweek for an article in the magazine's Jan. 28 issue.
Kmart, which announced sweeping management changes Thursday in an attempt to restore its credibility with bankers, vendors and investors, has exclusive rights to sell the Martha Stewart Everyday products until 2008.
Newsweek said that other retailers began lining up to woo Stewart and her products into last week. But under the terms of the seven-year contract that Stewart signed last year, a Kmart bankruptcy filing wouldn't automatically set her free to pursue other offers.
Newsweek said Kmart would not comment on its relationship to Stewart's company, Martha Stewart Living Omnimedia.