Jessica Simpson is banking on a big new investment.
The actor and singer turned designer has closed on a $67.5 million term loan from Schottenstein backed Second Avenue Capital Partners (SACP) for her eponymous line, The Jessica Simpson Collection.
According to SACP, the new financing will be used to retire an existing credit facility and provide additional liquidity to fund new growth and a rapidly expanding portfolio.
This news comes months after Jessica Simpson and her business partner and mother Tina Simpson acquired 100% of the brand from Sequential Brands. Sequential bought the majority share from Camuto Group in 2015 but filed for Chapter 11 bankruptcy protection in August. In September, the singer opened up to FN about buying back her business as she and Tina were in the midst of negotiations with Sequential Brands Group Inc. At the time they owned 37.5% of the brand they founded in 2005.
After taking full ownership and control in November, the team immediately started on plans to further develop the existing business and expand the brand into new categories with immediate signings in five new license categories and an additional five more in negotiations. The Jessica Simpson Collection currently features 37 product categories including footwear, apparel, fragrance, luggage, fashion accessories, handbags, jewelry, maternity apparel, girls’ clothing, and home. New endeavors will include skincare, health and wellness, demi-fine jewelry, and furniture.
Jessica Simpson, CEO of the Jessica Simpson Collection, said in a statement: “Vince (Camuto) used to say, ‘without the right people, you’re nowhere’. We have that in our management team, we count on it from our licensing partners, and now we can rely on it from our financing partner. It feels amazing to have full control of our company and with the right support in place, the sky’s the limit.”
Tina Simpson, president of The Jessica Simpson Collection, discussed the next chapter of the business in a statement. “We have amazing talented licensing partners, and to have Jessica at the helm gives them renewed energy and belief in the future of the brand,” she said. “By regaining control of her namesake brand, Jessica and I, along with our hard-working and dedicated team can build a legacy brand that will transcend generations. We are excited to have SACP and our licensing partners in our corner, supporting our objectives, as we embrace the future and continue to build the brand.”
“We’re thrilled with the success of the brand since the acquisition in November 2021, as evidenced by a very strong first quarter of 2022 where we exceeded year-over-year first quarter revenues by 15%,” Jessica Simpson Collection CFO Jeffrey Howald added. “We’ve also undergone an aggressive expansion into international sales, and we’re extremely pleased by the reception from our new and potential partners in such a short time since closing the brand acquisition.”