Bailing Out Martha Stewart Omnimedia
Topic Advertising, Sales Promotions, and Public Relations
Key Words Negative publicity, reactive public relations strategy, Martha Stewart, Omnimedia
InfoTrac Reference CJ114265270
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News Story 

Troubled diva of domesticity Martha Stewart resigned in March from her position as director and chief creative officer of Martha Stewart Living Omnimedia, Inc. The move came shortly after the highly-publicized court verdict against Stewart for insider stock trading violations unrelated to Omnimedia.

While Stewart's namesake company now aims to salvage its brand and clear away remaining negative press surrounding its founder, it is reported that the 62-year-old Stewart will continue with the company in the non-executive position of editorial director, reporting to Chief Executive Officer Sharon Patrick.

According to press reports, Stewart will continue to play a key role within the company, lending creative inspiration for new product development, writing homekeeping books, undertaking editor and television assignments, and providing input on the continuing evolution of MSO and its brand.


(March, 2004)

Questions
1.

Do you think Martha Stewart's resignation was helpful in the ongoing public relations effort to salvage the reputation of Martha Stewart Living Omnimedia, Inc.? Why or why not?

Source Leon Lazaroff, "Omnimedia Talks about Rebranding after Martha Stewart Quits Board," Knight Ridder/Tribune Business News, March 16, 2004, pITEM04076200.
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