Foes in Court, Martha Stewart and Macy's Are Friends for TV Special

Ms. Stewart Helps Judge 'Macy's Million Dollar Makeover' on TLC

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Macy's and Martha Stewart Living Omnimedia may be at odds in court, but that didn't stop them from teaming up on a prime-time TV special.

Tonight's "Macy's Million Dollar Makeover with Clinton Kelly" on TLC will see Ms. Stewart serving on a panel of judges choosing among business pitches from fashion, home and food entrepreneurs.

"Macy's Million Dollar Makeover" was taped in March, several months after MSLO stunned Macy's by selling a 17% stake to JC Penneyand agreeing to set up mini Martha Stewart shops inside JC Penney stores.

Macy's promptly sued, saying it has exclusive rights to Martha Stewart merchandise in certain categories. "MSLO has made plain that it has breached and plans to continue breaching an exclusive contract with Macy's ," the lawsuit alleged. "Billions of dollars of sales are involved."

Martha Stewart responded that its JC Penney pact is permitted under the terms of the Macy's deal.

Still, Macy's and Martha Stewart Living extended their agreement until January 2018, according to Jim Sluzewski, a spokesperson for the department store.

"It is business as usual for the Martha product at Macy's ," he said. "While there is litigation involving the sale of Martha product to a competing retailer in future years, that does not involve 'Million Dollar Makeover.'"

Martha Stewart Living echoed the sentiment, saying Ms. Stewart continues to work with Macy's to promote their partnership.

The three finalists on tonight's show will get advice on growing their businesses and brands from designer Tracy Reese, interior designer Sheila Bridges and Matt Lewis, co-founder of Baked, a Brooklyn bakery.

In addition to Ms. Stewart, designer Tommy Hilfiger and chef Marcus Samuelsson will critique the finalists' business plans and finally choose a $1 million winner.

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