J.C. Penney Company, Inc. (JCP), Macy’s, Inc. (M): The Companies Head Back to The Courtroom

Macy’s, Inc. (NYSE:M), on the other hand, doesn’t have a huge stake in the game. If it wins, then it gets to keep selling Stewart’s merchandise. If it doesn’t, then it will face a fine and probably stop carrying the merchandise. So far, neither of those outcomes has worried investors, with Macy’s stock up 13% since the beginning of the year. On the other hand, Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) is down 4% and J.C. Penney — which has had more problems than just this case — is down 20%.

The bottom line
The end of mediation is bad news for both Martha Stewart and J.C. Penney Company, Inc. (NYSE:JCP) investors. An out-of-court resolution would likely have been milder, and — more important — quicker. Right now, time is against J.C. Penney Company, Inc. (NYSE:JCP), which is just sitting on inventory. Macy’s, Inc. (NYSE:M) has all the time in the world, and no impetus to try to move things along faster. The longer this drags on, the worse it’s going to get.

The article J.C. Penney and Macy’s Head Back to the Courtroom originally appeared on Fool.com and is written by Andrew Marder.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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