Jessica Simpson made a last-minute offer to grab her brand before the company that owns it filed for bankruptcy protection this week.
Over the past six months or so, the singer-turned-designer had been trying to raise enough funds to buy her 10 year-old brand back from licensing company Sequential Brands Group, which filed for Chapter 11 bankruptcy protection on Aug. 31.
In bankruptcy court on Wednesday, Sequential’s lawyer revealed that Simpson had indeed reached a tentative deal with the company to pay $65 million for her brand just one day before it filed, according to a Bloomberg report.
She and her family want to become the stalking-horse bidders for the brand, which includes a children’s clothing and shoe lines as well as home goods. Simpson’s mother and sister, Ashlee Simpson started the company together and have remained hands on and involved in the marketing and advertising, which recently featured Simpson’s daughters.
Sequential bought the rights to the entertainer’s brand in 2015 when it forked over $117 million for a 62.5 percent stake in the company. Vince Camuto had previously owned it, paying just $15 million for it.
Sequential grew the brand rapidly with annual sales topping half a billion dollars before the pandemic, according to a source close to the company.
There are no guarantees that Simpson will get her brand back now that Sequential will likely be holding an auction to solicit the highest bidders for the seven brands it owns, which also include Joe’s Jeans, activewear brand Gaiam and Avia, SPRI, AND 1 and William Rast.
“It’s possible that Jessica Simpson is outbid,” bankruptcy attorney Kenneth Rosen told The Post.
Rosen also said the bankruptcy judge is likely to grant Simpson’s request to become the stalking-horse bidder, “but that only means that she is the first bidder unless someone wants to top her bid.”