Mine worked as well. Here's a response I received after restoring my purchases, in case it doesn't work for any of you:
Hello,
Thank you for contacting Martha Stewart Living Omnimedia.
We are sorry that you are experiencing a problem restoring or downloading digital issues.
Our technical team has fixed the issue.
In order to restore past purchases or download the current issue, you will need to delete issues showing in the Newsstand. To delete an issue, simply press your finger down on the image until it starts to wiggle and an X appears in the left-hand corner. Tap on the X. A dialog box will appear. Tap Delete.
Once you have done this for all Martha Stewart Living and/or Everyday Food issues, return to the Store. You will be able to restore purchases and install current issues of the magazines.
We apologize for any inconvenience. Please let us know if you need additional assistance.
Sincerely,
MSLO Customer Relations