Martha Stewart Living Not Seeking New CEO

Martha Stewart Living Omnimedia Inc. said it isn’t searching for a new chief executive to replace Martha Stewart, who founded the media company.

The New York Times reported that the company began looking for an executive to replace Stewart, citing people who had been briefed on the search, after allegations of insider trading led to a plunge in its stock.

Martha Stewart Living shares have plunged 60% since June 6, the day before a House panel said it was investigating Stewart’s sale of ImClone Systems Inc. shares.

Given the investigations centering on Stewart, a former stockbroker and board member of the New York Stock Exchange, the company would be better off waiting to search for a new chief executive until after the probes are resolved, analysts said.

The stock rose 15 cents to $7.80 in NYSE trading.