In the wake of Sequential Brands Group, Inc. filing for Chapter 11 bankruptcy protection, the future of the brands in its portfolio are in flux. But one popular brand already has an interested buyer.
According to a representative for the Jessica Simpson Lifestyle Brand, Jessica Simpson and her mother Tina Simpson are “in discussions” to buy back the remaining 62.5% of the brand. Sequential is currently looking to sell all or most of its assets and is seeking approval for an auction and bidding process that will enable interested buyers to bid on its assets.
Sources previously told WWD in May that Simpson and her mother were working with William Susman’s Threadstone to raise money to buy back the brand.
In 2015, Sequential acquired a majority stake in Jessica Simpson brand, with the Camuto Group continuing to produce the collection’s footwear. Jessica and Tina currently own 37.5% percent of the brand.
“Jessica, Tina and their tight-knit team of women are committed to continuing to provide their wide variety of consumers with the quality product and reasonable price point they have to come to expect,” the representative told FN in a statement. “The Jessica Simpson Lifestyle Brand has been a consistently profiting and expanding entity over the last 16 years, now with 33 product categories, a social reach of 15 billion fans and booming e-commerce. The team looks forward to continued growth alongside their best in class licensing and retail partners.”
The Simpson brand has been a bright spot among continuous losses at Sequential, which also owns Joe’s Jeans, And1, Avia and more brands.
According to financial documents, Sequential had an outstanding net debt of $452.3 million as of December 31, 2020. To pay back lenders, the company sold some of its brands this year. Earlier this this month, Sequential sold the Ellen Tracy and Caribbean Joe Island Supply Co. brands to the GMA Group for a total of $20 million. It also sold its Heeling Sports brand BBC International for $11 million in April.
Footwear News has reached out to Sequential for a comment.