Kmart has extended its licensing contract to carry Martha Stewart Everyday products through 2009, and will add furniture to the line.

Kmart Holding Corp. and Martha Stewart Living Omnimedia, Inc. revised their contract this week, tacking on another two years to the original seven-year deal signed in June 2001, Martha Stewart Living said.

Kmart said it would expand Martha Stewart Everyday into several product categories, starting with ready-to-assemble furniture.

Kmart also said it would withdraw its lawsuit against Martha Stewart Living and drop its minimum sales requirement for each product category, an element of the original contract that prompted the February 2004 suit. The revised contract keeps an undisclosed minimum sales requirement for the full line.

The contract extension is good news for New York City-based Martha Stewart Living, on shaky ground after founder Martha Stewart was convicted on March 4 of lying about a stock sale. Stewart has since resigned as an officer of Martha Stewart Living Omnimedia but continues as founding editor of the magazine. She is scheduled to be sentenced in June.

Kmart has extended its licensing contract to carry Martha Stewart Everyday products through 2009, and will add furniture to the line.

Kmart Holding Corp. and Martha Stewart Living Omnimedia, Inc. revised their contract this week, tacking on another two years to the original seven-year deal signed in June 2001, Martha Stewart Living said.

Kmart said it would expand Martha Stewart Everyday into several product categories, starting with ready-to-assemble furniture.

Kmart also said it would withdraw its lawsuit against Martha Stewart Living and drop its minimum sales requirement for each product category, an element of the original contract that prompted the February 2004 suit. The revised contract keeps an undisclosed minimum sales requirement for the full line.

The contract extension is good news for New York City-based Martha Stewart Living, on shaky ground after founder Martha Stewart was convicted on March 4 of lying about a stock sale. Stewart has since resigned as an officer of Martha Stewart Living Omnimedia but continues as founding editor of the magazine. She is scheduled to be sentenced in June.