J.C. Penney Rolls Back Martha Stewart Deal, Returns Shares

In December 2011, Ron Johnson hailed J.C. Penney Co.’s $38.5 million investment in Martha Stewart Living Omnimedia Inc. as "transformational."

Almost two years later, Johnson is gone as chief executive officer and J.C. Penney yesterday rolled back an agreement tied to the investment in the homemaking maven’s company. Under an amended deal, the partnership will end in June 2017 instead of 2021 and the parties will stop making products in categories at the center of a lawsuit brought by Macy’s Inc.