With its star facing a possible prison sentence, the floundering "Martha Stewart Living" television show will be put on hiatus after the current season winds up, the show's producers announced Tuesday.
In a related move, Martha Stewart Living Omnimedia Inc. also will be eliminating 40 jobs in the television business segment by June 30, leaving 35 positions, spokeswoman Elizabeth Estroff said. The company will post a restructuring charge of up to $2 million in the second quarter.
Production of the award-winning syndicated television show, distributed by King World Productions, will continue for the remainder of the 11th season, through September. However, its market reach has been nearly cut in half as affiliates dropped the show following Stewart's conviction.
"I am deeply sorry that it has become necessary for the show to go on hiatus until my personal legal situation is resolved," Stewart said. "I hope to resume our close collaboration just as soon as I am able to do so."
Tuesday's announcement is the latest bad news for the multimedia company, which has struggled with disappointing sales, quarterly losses and a battered stock since Stewart was linked to an insider trading scandal almost two years ago.
Stewart was convicted March 5 for lying about why she sold 3,928 shares of ImClone Systems stock in 2001, just before the stock price plunged. Stewart, who owns 61 percent of the media empire, also stepped down as chief creative officer and resigned from the company's board. She assumed the title of founding editorial director.