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In another move to distance itself from its founder, Martha Stewart Living Omnimedia said Tuesday that it will continue production of "Petkeeping with Marc Morrone," a half hour syndicated show that airs on the weekends Stewart had resigned as chairman and CEO last June after being indicted Publishing, which accounts for about 55 percent of the company's business, posted a 30 percent drop in revenue to $23 Even before her conviction, Stewart's TV show's future had been cloudy The show was launched in 1992 as a weekly half-hour segment, but expanded to six days a week in 1997, according to Estroff The company also said it will accelerate its development of special and new programming such as "Everyday Food," which was part of the Martha Stewart Living show, but is being spun out as a separate special on the weekends also will be eliminating 40 jobs in the television business segment by June 30, leaving 35 positions, spokeswoman Elizabeth Estroff said In a related move, Martha Stewart Living Omnimedia Inc S Revenues in its television division declined 36 percent to $4 "Despite the current challenges, we are fully focused on developing for our loyal audiences new and special programming that is consistent with our unique 'how-to' style and high quality of television," said Heidi Diamond, president of the company's television division 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 That was primarily due to CBS-owned and operated stations taking the show off the air after the conviction However, its market reach has been nearly cut in half as affiliates dropped the show following Stewart's conviction Production of the award-winning syndicated television show, distributed by King World Productions, will continue for the remainder of the 11th season, through September The company, which markets merchandise, magazines and TV shows, has always said that its television segment, which accounts for about 11 percent of total sales, remains its most vulnerable division She assumed the title of founding editorial director 'Martha Stewart Living' Going on Hiatus May 18, 1:40 PM EST 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 Earlier this month, Martha Stewart Living reported a wider-than-expected loss for the first quarter and said that advertiser defections will likely push losses for the second quarter beyond Wall Street's forecasts Stewart, who owns 61 percent of the media empire, also stepped down as chief creative officer and resigned from the company's board "I hope to resume our close collaboration just as soon as I am able to do so "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 2 million in the first quarter The company acknowledged in its conference call with investors in early May, that distribution of its syndicated television daily show had been reduced to 52 percent from 90 percent of U S The company will post a restructuring charge of up to $2 million in the second quarter Merchandising, which makes up about 22 percent of overall business, has fared better, posting a slight gain to $10 8 million from $10 " 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 Shares in Martha Stewart Living fell 14 cents, to $9 3 million a year ago TV markets 9 million The segment has met company expectations, and garners 94 percent of U 15 in afternoon trading on the New York Stock Exchange King World was not actively trying to renew contracts in markets where the show aired She is expected to be sentenced June 17, and faces 10 to 16 months in prison local television markets " Just before she was sentenced, Stewart â€â€? who during her trial spoke only to declare her innocence â€â€? rose from her seat and, her voice breaking almost to the point of sobs, told the judge she feared her life would be "completely destroyed , close to her home in Westport Whatever I have to do in the next few months, I hope the months go by quickly The prison sentence punctuated a chain of events that began on Dec Stewart resigned as CEO of the company when she was indicted last year and gave up her seat on the board after she was convicted 61 at $11 I'm used to all kinds of hard work, as you know, and I'm not afraid S She remains its leading creative force and holds the title of founding editorial director The juror issue and the perjury charges against Larry Stewart, no relation to Martha Stewart, are expected to form the basis of Martha Stewart's appeal to the 2nd U 25 in afternoon trading on the New York Stock Exchange " Stewart, who was also ordered to spend five months confined to her home and fined $30,000, was allowed to remain free pending appeal Prosecutors alleged that Bacanovic, now 42, ordered his assistant to tip Stewart that Waksal was trying to sell his shares But the woman who saw her gracious homemaking empire crippled over a single transaction smiled boldly into the cameras outside to denounce her treatment, pitch her company and vow: "I'll be back Stewart seeks," prosecutor Karen Patton Seymour told the judge District Judge Miriam Goldman Cedarbaum she was sorry that others had been hurt by the scandal "She has stood for the values of quality and making products as perfect as possible Just last week, Cedarbaum again denied new trials for Stewart and Bacanovic, this time saying there was "overwhelming independent evidence" to support the guilty verdicts " Prosecutors, as they did when Stewart was indicted and throughout the trial, portrayed the case as a matter of preserving the integrity of government investigations And she vowed: "I'll be back " Smiling and showing her well-honed comfort with TV cameras, she even suggested fans could "continue to show your support" by subscribing to her magazines and buying her line of homemaking products Get Martha on the phone The sentence was the minimum possible under federal guidelines Defense lawyer Robert Morvillo had asked the judge for a sentence of merely probation and community service working with poor women " But the verdict on March 5 â€â€? guilty on four counts apiece for Stewart and Bacanovic â€â€? set off a string of events nearly as dramatic as the trial itself "I believe that you have suffered, and will continue to suffer, enough," the judge said But she said a prison term was appropriate because "lying to government agencies during the course of an investigation is a very serious matter, regardless of the outcome of the investigation Stewart and Bacanovic always maintained she sold because of a preset plan to unload the stock when it fell to $60 " Then, in an extraordinary change of demeanor, Stewart walked down the courthouse steps, approached a microphone and denounced the scandal as full of "such venom and such gore â€â€? I mean it's just terrible Stewart, a Secret Service ink expert, of lying repeatedly in his testimony at the trial â€â€? mostly about the role he played in ink-analysis testing of a stock worksheet Cedarbaum accepted a defense request to recommend to federal prison officials that Stewart serve her time at a minimum-security facility in Danbury, Conn The judge noted she had received more than 1,500 letters from Stewart supporters across the country pleading for leniency Circuit Court of Appeals "She has brought a measure of beauty to our everyday world with refined color schemes, floral arrangements, and culinary delights," he said "Citizens like Ms Stewart Sentenced to 5 Months in Prison Jul 16, 2:23 PM EST Choking back tears and pleading for leniency, Martha Stewart was sentenced to five months in prison Friday for lying about a stock sale "What was a small personal matter became over the last two and a half years an almost fatal circus event of unprecedented proportions spreading like oil over a vast landscape, even around the world," Stewart said Cedarbaum denied a request for a new trial, saying there was no proof the juror lied or was biased He said Stewart "knows she's not perfect" and deserved mercy I will be back , a biotechnology company run by her longtime friend Sam Waksal S While Stewart did not admit guilt in court â€â€? a move that could have jeopardized her appeal â€â€? she took pains to tell U ImClone announced negative news the next day that sent the stock plunging " Investors sent the stock of Martha Stewart Living Omnimedia higher by more than 30 percent Peter Bacanovic, the high-powered stockbroker who was convicted along with Stewart of lying about her stock sale in December 2001, received the same sentence of five months in prison and five months home confinement "The whole atmosphere of the trial was one about a crime that was never charged and never happened," said Walter Dellinger, a lawyer hired specifically to handle the appeal Additionally, lawyers said Friday they will argue that prosecutors inappropriately suggested at trial that Stewart was charged with insider trading â€â€? a count never included in the indictment against her Cedarbaum allowed Stewart to postpone the sentence while her lawyers appeal her conviction â€â€? a process that could take months, and that legal experts have called an uphill battle Stewart saved $51,000 The star witness against Stewart was Douglas Faneuil, a young former brokerage assistant who vividly described Bacanovic's order when he learned Waksal was trying to sell: "Oh my God 27, 2001, when Stewart, in a brief phone call from a Texas tarmac on her way to a Mexican vacation, sold 3,928 shares of ImClone Systems Inc In April, lawyers for both defendants accused one juror of lying about an arrest record in order to get on the trial And in May, federal prosecutors accused Larry F Shares were up $2 Stewart who willingly take the steps to lie to officials when they are under investigation about their own conduct, those citizens should not expect the leniency that Ms |
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