Martha Stewart's Image Makeover: How Prison Helped Her Change

SAVANNAH, Ga. - Jan. 28, 2021 - PRLog -- Prior to 2001, Martha Stewart had been the domestic queen of homes and kitchens for decades. However, in December 2001, Stewart became involved in an insider trading scandal that led to her being sentenced to five months in prison. Interestingly enough, she was never convicted for the insider trading itself. So Georgia-based developer and hotelier, Charlton Claxton, is taking a look back at why she went to prison in the first place and how it ended up changing her public image for the better.

Where It Started
Martha Stewart's brand was soaring after the 1997 launch of her company, Martha Stewart Living Omnimedia. Stewart was the chairwoman, president, and CEO of the thriving company, which included television, print, and merchandising divisions. Stewart then became the first female, self-made billionaire in 1999 when the company went public. But Stewart's downfall came after she sold all 3,928 shares of her ImClone Systems stock in 2001 to save herself from a $45,673 loss. She obtained information about the stock illegally from a former broker contact.

Where It Ended Up
After a six-week trial in 2004, Stewart was found guilty on felony charges of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators. She was sentenced to five months in federal prison and two years of electronic monitoring probation.

The beginning of Martha Stewart's image overhaul actually began in 2004 when she called a news conference to announce she was reporting to prison early, despite a pending legal appeal. Three weeks later, Stewart traveled to Alderson Federal Prison Camp in West Virginia for the prison intake process: fingerprinted, strip-searched, and assigned a bunk bed.

Release from Prison
Stewart left prison in March 2005 in a crocheted cape made by a fellow inmate, and she even paid for a flatbed truck that would give photographers a better view. Going to prison gracefully and admitting her wrongs ended up being a very good thing – financially. Stock prices for Martha Stewart Living Omnimedia quickly doubled.

Where She's at Today
Stewart was soon back on the air with "The Martha Stewart Show" and signed deals with Home Depot, PetSmart, and Michaels. Her comeback has experienced some failures along with its successes. In 2015, Sequential Brands Group announced it would acquire Martha Stewart Living Omnimedia in a deal valued at $353 million, after the company posted losses 11 out of the previous 12 years.

In the last few years, Stewart has reemerged as a beloved and still shockingly relevant personality. She was a surprise hit at the 2015 Comedy Central roast of Justin Bieber. In 2016, she launched a meal-kit line called "Martha & Marley Spoon." She even hosts a cooking show on VH1 with Snoop Dogg.