Martha Stewart's Mess: Advertisers Bail But She Keeps Her “Weekend Driver”

The merchandising losses stem mainly from the end of a deal with Kmart in January 2010 that Stewart appears to have not replaced. The company is running an accumulated deficit of $163 million. In other words, MSLO would need to repeat its 2007 performance for 16 straight years before the company breaks even.

Stewart the Sultan

Otherwise, things are looking up. Revenues rose across the board in Q1 2011 , showing that there is some sign of life within the brand itself. If an acquirer or investor were to come on board, however, the most obvious place to ask for cuts is within management itself, which is currently a self-serving sultanate for Stewart and her family. Stewart’s compensation was $6 million in 2010 , of which almost half were gilded-cage perks:

That’s right, Stewart gets paid $6 million a year and doesn’t even pay her own phone bill. The largesse doesn’t end there. MSLO is riddled with nepotism. Also on the company payroll are:

It’s not that there’s anything fundamentally unsound about the company. Adult supervision could probably turn the place around in a couple of years, largely through cuts and efficiencies. But that would require Stewart to concentrate on her creative product and accept professional management of everything else, including her compensation. It’s tough to imagine her saying yes.

Related:

Alexis Stewart And Jennifer Koppelman Hutt, Critically Acclaimed ...

NEW YORK, September 1, 2010 –When Alexis Stewart (yes, Martha’s daughter) and Jennifer Koppelman Hutt launch their topical and witty new hour-long talk show, “Whatever With Alexis & Jennifer,” a Hallmark Channel original series premiering Monday, September 13 (11 a.m. ET/PT, 10C), viewers will have a daytime alternative that is fresh, fun and “so not your mother’s” talk show. The show is part of the network’s expanding slate of lifestyle-oriented programming that will premiere this fall.

Alexis and Jennifer have built an enthusiastic following with their daily radio show on Sirius Channel 112/XM157 and the critically acclaimed “Whatever Martha!” TV series. Now, as hosts of “Whatever with Alexis & Jennifer,” airing daily on Hallmark Channel, the duo will have a national platform to explore what’s in the daily headlines and how viewers are dealing with everyday issues. Filmed in New York in front of a live studio audience, the show will feature a variety of in-studio guests, from headline makers to celebrities to people who just have something to say, and will become a daytime destination unlike anything else on TV.

While opposites in many respects, Alexis and Jennifer have this in common: their openness, honesty and willingness to discuss “whatever” comes their way.

“What’s special about this show is the chemistry generated between Alexis and Jennifer,” said Executive Producer David Steinberg. “They are totally unique: Alexis is gifted, smart, witty and relishes her single life; Jennifer is sharp as a whip, married with kids, super funny and a licensed attorney and notary to boot. From an executive producer’s point of view, this is delicious. We’re creating a family that viewers haven’t seen before.”

Alexis Stewart said: “Jennifer and I are fortunate to have a passionate and loyal audience from our four years in talk radio. People know that we’re open, honest and we embrace and sometimes celebrate our imperfections. But bringing our banter to television and working with David is an amazing opportunity. We relish the chance to address what’s on the minds of viewers in a format that is both smart and extremely entertaining.”

Jennifer Hutt added: “I think most viewers can relate to one or both of us. We deal with the same daily issues as everyone else, but this gives us a forum to discuss our thoughts with a national audience. It’s really an opportunity to get a genuine conversation started about things that matter to all of us and gives our guests a chance to reveal themselves in a way that we hope is surprising and authentic.

Whateverland, Learning to Live Here

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