Crisis Management Expert David Margulies Says Martha Stewart's Damage Control Efforts Fall Short

Crisis Management Expert David Margulies Says Martha Stewart's Damage Control
                              Efforts Fall Short

PR Newswire

DALLAS, March 6, 2013

DALLAS, March 6, 2013 /PRNewswire/ --An expert in litigation media relations
and crisis management says the current trial involving Martha Stewart, J.C.
Penney and Macy's could seriously damage the value of the Martha Stewart

"Stewart has once again tarnished her brand with what many will view as
unethical conduct," said crisis management expert David Margulies. "Even if
the court rules in her favor the perception will be that Stewart stabbed a
longtime loyal business partner in the back."

"The public looks at legal issues from a point of fairness rather than from
the specific legal issues involved," said Margulies. "When dealing with the
media on legal issues we try to state our client's position based on what key
stakeholders will believe is fair and ethical conduct." 

Stewart has been critical of Macy's CEO Terry Lundgren for hanging up on her
when she was describing her agreement with J.C. Penney.Stewart testified, "I
was quite taken back by his response and when he hung up on me I was quite

"Lundgren did what any experienced CEO would do when he was alerted to a
situation that was likely to lead to litigation," said Margulies. "He ended
the conversation without making any comment that would jeopardize his
company's legal position."

"The litigation has resulted in damaging news stories concerning the poor
performance of her company Martha Stewart Living Omnimedia, and has brought
additional negative publicity for J.C. Penney at the worst possible time,"
said Margulies.

"In my book, Crisis Management in the Internet Age, we strongly recommend
organizations establish the role of a devil's advocate to push back against
decisions that can lead to this type of litigation and negative publicity.

"Stewart should be taking special care to protect her image because of a
previous conviction and prison sentence in 2004 for making false statements
and obstruction of justice," said Margulies. "Stewart continues to act as
someone who believes they have a special sense of entitlement."

David S. Margulies is President and founder of the Margulies Communications
Group. He is the author of the book, Save Your Company, Save Your Job –
Crisis Management in the Internet Age.

SOURCE Margulies Communications Group

Contact: Margulies Communications Group, David Margulies,
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