Attention Kmart shoppers: Our bluelight special on Martha Stewart items will continue indefinitely... come hell, high water, or jail time.
That's the message the bankrupt retailer is sending out today, even as Stewart prepares to face charges for her connection to the insider trading scandal at ImClone Systems
A source told the Associated Press today that the SEC has informed Stewart it intends to file civil securities fraud charges against her. The lifestyle maven is accused of selling ImClone shares after being tipped to regulatory problems with the company's cancer drug, Erbitux. Former CEO Samuel Waksal has already pled guilty to insider trading.
Unlike Waksal, Stewart would not face jail time if convicted of the civil charges. However, federal prosecutors in the Manhattan U.S. attorney's office are also investigating the case, so she could still face criminal charges.
In the meantime, her clothing and bedding products are still outselling all other lines, according to Kmart
It may be a risky strategy, but considering her Everyday line accounted for $1.5 billion in sales last year, the company has little choice but to ride Stewart's coattails -- even through the mud.