Martha Stewart Shakes Up Ranks --- Doyenne Is in a Tough Spot Amid the Sharpest Ad Downturn in Decades
For the second time in a year, Martha Stewart Living Omnimedia shook up its executive suite, placing Martha Stewart herself squarely on the hot seat during the harshest ad recession in decades.</br></br>The company said Tuesday that Wenda Harris Millard, a fixture in advertising circles who was named co-chief executive in June, is leaving. She will join Media Link LLC, a Los Angeles consulting firm run by well-known ad executive Michael Kassan.</br></br>Ms. Millard's departure -- following clashes with Ms. Stewart, according to people familiar with the matter -- costs the company a key link to Madison Avenue at a time of weak marketing spending. Earlier this month, Jacki Kelley, an ad executive close to Ms. Millard, left Martha Stewart Living Omnimedia for a top job at Universal McCann, a media-buying firm owned by Interpublic Group.</br></br>The latest shake-up comes after ad pages plummeted 37% from a year earlier at Martha Stewart Living magazine in the first quarter and declined by half at Everyday Food. A contract with Sears Holdings' Kmart stores that has been a significant contributor to the company's profits is slated to expire in coming months. Martha Stewart Living Omnimedia has posted just one profitable year in the past five, and investors have long complained about its spending, including its executive-compensation packages.</br></br>Ms. Millard's departure comes a little less than a year after Susan Lyne stepped down as CEO. Ms. Lyne had helped stabilize the company during Ms. Stewart's legal troubles.