Following Sequential Brand Group’s voluntary Chapter 11 filing, it appears that Jessica Simpson might be buying the rights to her brand back after the news of the bankruptcy broke.
Last week the brand management and licensing company filed for a Chapter 11 petition at the US Bankruptcy Court as a result of significant debt, declaring it will no longer be able to operate its current portfolio of brands, including Jessica Simpson’s clothing brand.
In a report by Bloomberg, Jessica Simpson’s family appears to have offered to buy the singer’s brand for 65 million dollars in a bid to bail it out of the bankruptcy proceedings.
Sequential Brands Group also oversees Joe’s Jeans, Avia, Gaiam and William Rast, with the company stating it will hold an auction for its brands following court approval. It hopes to attract investors interested in paying higher prices for its brands, stating it “believes that each of its brands is well-positioned for profitability under the stewardship of new owners”.
The company said it will borrow a financial sum of 150 million dollars to cover the costs of its Chapter 11 case. According to Sequential, lack of profit from licensing deals and pandemic-related setbacks were the cause of its filing, with the company listing debts over 400 million dollars.