Posted on: Tuesday, June 22, 2004
Stewart tells shareholders she misses her job
By Anne D'Innocenzio
Associated Press
NEW YORK — Martha Stewart told shareholders yesterday that she misses her old position at her namesake company and hopes the domestic empire she founded functions as usual while she deals with her legal woes.
"I miss my old job terribly," said Stewart, who resigned as chief creative officer and from the board of Martha Stewart Living Omnimedia Inc. in March after she was convicted of lying about a stock sale.
But Stewart, who now has the title of founding editorial director and remains the majority shareholder, said she is still involved in the multimedia company she created.
Addressing about 100 shareholders, Stewart declined to talk specifically about her legal problems, given what she described as her "delicate, somewhat fragile" situation. She did say the past year has been "fraught with real sorrow."
Stewart, who has asked for a new trial, is scheduled to be sentenced July 8. She is expected to get 10 to 16 months in prison.
Stewart signed autographs and chatted with shareholders after a meeting that was full of supporters. But the overall advertising and business climate has been less than forgiving of her legal troubles.
Martha Stewart Living, which has been struggling with losses, disappointing sales and a battered stock for the past two years, last month reported a wider-than-expected loss for the first quarter. It also said advertiser defections will likely push losses for the second quarter beyond Wall Street's expectations.
In a move to distance itself from its troubled founder, the New York-based company reiterated its plans to place greater emphasis on the "Living" in its Martha Stewart Living magazine, starting with the September issue. It also repeated that it is expanding its guaranteed circulation for the Everyday Food magazine to 750,000.
The company announced in May that its floundering "Martha Stewart Living" television show will be put on hiatus after the current season, eliminating 40 jobs in the television division. The company recently signed a multiyear agreement with The Style Network to air repeat episodes of "Martha Stewart Living."
Shares in Martha Stewart Living fell 8 cents to $8.97 yesterday on the New York Stock Exchange. They were trading at more than double that before Martha Stewart was tied to an ImClone Systems Inc. trading scandal two years ago.
During the question-and-answer session, Gerrie Nussdorf of Manhattan said she didn't like the recent moves to downplay Stewart's name on the magazine.
"Martha has become an icon. The public gets inspired by more than just the merchandise," said Nussdorf, who owns 500 shares.
But Karen Skoglund, another fan and shareholder, said she thinks the company's strategy to distance itself from Stewart is wise.
"I'm in total support," of her, Skoglund said. "But the company has to lay low" right now.
