Jessica Simpson may buy her brand back from Sequential
The family of singer and actress Jessica Simpson has reportedly offered to buy her eponymous fashion brand from bankrupt parent company Sequential Brands Group Inc. for $65 million.
Sequential filed for Chapter 11 bankruptcy on Tuesday, August 31, having decided that it was no longer able to operate its brand portfolio due to its significant debt, which sources indicate totals around $435 million.
At the time, the company said that it planned to hold an auction in order to sell its brands. As well as The Jessica Simpson Collection, the group owns the Gaiam, Avia, Joe’s Jeans, And1, Spri, and William Rast brands.
According to a report from Bloomberg, Sequential made a tentative deal with the Simpson family the day before seeking court protection. Citing the group’s attorney, Joshua Brody, the report revealed that Sequential is working on a deal through which the Simpson family would act as the stalking horse bidder at the brand’s auction. The company hopes to conclude negotiations in the coming weeks.
In addition, two more of the group’s current partners, Galaxy Active and Centric Brands, have also agreed to be the lead bidders in auctions of other Sequential assets. These deals, which are still subject to court approval, would set a price floor for the brands in question.
If approved, the agreements would see Galaxy Active make an initial bid of $333 million for Sequential’s active division, while Centric Brands, which already holds a long-term license for Joe’s Jeans, would offer $42 million for the label.
First launched as a shoe line in collaboration with Nine West co-founder Vince Camuto in 2005, The Jessica Simpson Collection has since expanded to include apparel, accessories, homeware and fragrances.
Copyright © 2022 FashionNetwork.com All rights reserved.