8:53 a.m. | Updated
Martha Stewart Living Omnimedia announced on Wednesday that its chief executive, Lisa Gersh, a co-founder of Oxygen Media who joined the company last year, will resign.
The company said it would start the search for a new chief executive who would concentrate on building the company's merchandising business. Ms. Gersh will remain in her role until a new chief is found.
“It has been an honor to lead this company with its iconic brands, loyal following and wealth of creative talent,†Ms. Gersh said in a statement. “There is an exciting future ahead for Martha Stewart Living Omnimedia and I am committed to working with the board to ensure a smooth transition.â€
The announcement follows months of financial troubles for the company, which has been struggling to find profits in the financially troubled publishing industry.
In November, Ms. Gersh announced that she planned to cut back two of its four magazines and lay off about 70 employees, or 12 percent of the nearly 600-person company.
Earlier this year, the company cut $12.5 million in broadcasting costs by not renewing its daily programming deal with the Hallmark Channel, breaking its lease on its television production studio and ending its live audience for “The Martha Stewart Show.†In April, it was announced that a new weekly show, “Martha Stewart's Cooking School,†would be distributed on public television.
The company hopes that merchandising will help save the company. Its latest earnings report showed a decline in income in its two other divisions, publishing and broadcasting.
This post has been revised to reflect the following correction:
Correction: December 19, 2012
A previous version of this post referred incorrectly to the revenue Martha Stewart Living Omnimedia earned from merchandising. It increased, not decreased, in the company's third quarter, its latest earnings period.
