Martha Stewart and Kmart to part ways

New York City Martha Stewart Living Omnimedia said on Friday it was unable to agree to terms with Kmart, a unit of Sears Holdings Corp., that would have allowed their partnership to continue. As a result, they will part ways when the current agreement ends in January.

Company founder Martha Stewart ignited controversy last month when she told CNBC in September that Kmart had let her line of products “deteriorate.”

“We wish our friends at Kmart and Sears Holding all the best,” Stewart said in a statement. “To the extent my recent comments were taken by anyone to be inconsistent with this sentiment, that was not my intent.”

The agreement with Kmart will end just as Martha Stewart begins a new partnership with The Home Depot. Martha Stewart announced last month that it would begin selling a branded line of home-improvement products at the chain in January.