Jessica Simpson buys lifestyle brand for $ 65 million
It worked for Jessica Simpson after all.
The singer-turned-designer is buying her eponymous lifestyle brand out of bankruptcy for $ 65 million, court documents show.
Its brand was majority owned by Sequential Brands Group, which filed for Chapter 11 bankruptcy in August.
Simpson had been trying for months to get enough capital to buy the 62.5% stake in the company Sequential controlled. Jessica and her mother, Tina Simpson, already owned 37.5% of the company.
A scheduled auction for the remaining assets of Sequential, which also held Joe’s Jeans, Avia and Gaiam, was called off on October 28.
No other bidder came forward to buy the celebrity brand – The Jessica Simpson Collection – for which she was the Hunting Horse bidder, meaning she had been the original bidder who had already made a deal. agreement with the seller before the auction.
Now that she will have full control of her brand, which was announced in court documents on Friday, Simpson is set to expand the business, according to a source familiar with the deal.
âJessica is completely re-energized to rebuild this $ 1 billion brand,â the source said.
Simpson, the source added, is in active negotiations with licensees for new product categories beyond the clothing, footwear, housewares and children’s products that it currently markets.
Sequential initially bought the rights to the artist’s trademark in 2015 when it shelled out over $ 117 million for the 62.5% stake in the company. Vince Camuto had previously owned it, paying only $ 15 million for it.
More recently, Simpson-branded products have been sold at Macy’s, Nordstrom and Dillard’s and generate around $ 700 million in retail sales, the familiar source said.
Once the deal is done, Simpson and his mother will own 100% of the 16-year-old company.