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The Martha Stewart Living founder said she was “heartbroken” to miss the event, but reassured fans that she is “feeling fine”.
The 80-year-old took to Instagram to post a video from inside the event, although she was not in attendance.
She wrote in the caption: “This evening, I planned to host a garden party at The Plaza on behalf of my favourite skincare line, Mario Badescu.
“But I’m sad to report that I tested positive for Covid-19. I am feeling fine but I am sticking to the rules and isolating.
“I’m heartbroken to be missing the celebration of over 50 years of amazing skincare and the launch of ‘The Martha Facial’ at their NYC flagship,” Stewart added.
She said that “The Martha Facial” is a “special offer of the facial I’ve been receiving there for more than 40 years”.
Stewart has been a longtime fan of Mario Badescu and frequently promotes their products, including during a guest appearance on The Oprah Winfrey Show in 2010.
Stewart has previously partnered with the skincare brand and created her own skincare systems in 2017.
The kits created by the TV personality were organised into different bundles for varying age groups, including for teenagers and people in their twenties, thirties, forties, and fifties.
An attendee at the event was quoted by Page Six as saying that Stewart’s absence was confirmed just minutes before she was due to appear.
The source said: “A crowd gathered around eager for her to speak. But then her publicist came on and announced unfortunately she had tested positive for Covid and would no longer be able to host the event.
“You could tell everyone was really disappointed,” they added.
Stewart’s fans were quick to wish her a speedy recovery from the virus.
“Get well soon. Happy to hear that you are feeling okay,” one person wrote.
Another said: “So sorry to hear you have Covid. Hope you feel better soon!”
Mario Badescu’s official Instagram account commented: “We love you!”
Earlier this month, Stewart launched The Martha Stewart Podcast, a talk show-style series that will feature celebrities including Snoop Dogg, Kris Jenner, and Alex Rodriguez.