Martha Stewart's 10 Biggest Mistakes Since Leaving Prison

Martha Stewart

Photo: WikiCommons

Just a year ago, Oprah called Martha Stewart’s comeback “incredible,” claiming she stood “stronger than ever.”Oprah referred to Stewart’s journey after a 10-month sentence in 2005 for lying to government officials about a stock sale.

However, Martha Stewart Living Omnimedia (MSLO), Stewart’s empire of magazines, TV shows, and DVDs, has been profitable in only one of the past eight years. It has lost a total of $185 million during the same period, according to a great profile by New York Magazine.

We looked at the New York profile, as well as other stories to compile some of the biggest management mistakes Stewart has made since 2005.

She assigned Charles Koppelman to the board because he told her what she wanted to hear

She couldn't keep her mouth shut

During an appearance on CNBC in 2009, Stewart said she was glad her contract with Kmart was expiring at the end of the year, claiming she was 'extremely disappointed' by shabby stores and poor-quality merchandise. MSLO still hasn't recovered from the merchandising loss stemming from the end of the deal.

In fact, MSLO would need to repeat its 2007 performance -- when it made $10 million on revenues of $203 million, for 16 straight years before the company breaks even.

'Ms. Stewart should accept responsibility for her product,' Kmart responded.

(Source: DailyFinance)

She lost the humble image she gained from jail

She was so focused on doing things herself, she kept others from doing their work

She paid her daughter and the Koppelman's daughter almost $1 million to host a show on her network

Stewart didn't only hire her own daughter, Alexis Stewart, who is paid about $400,000 to host 'Whatever, Martha!' She also hired Koppelman's daughter, Jennifer, to co-host with her. Stewart's sister-in-law, Margaret Christiansen, is also a senior vice president.

(Source: BNet)

She refuses to step back

She went on a merchandising frenzy

She kept up her pre-jail extravagant costs

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