Jessica Simpson’s business is set to redeem the singer-turned-fashion business owner’s name from insolvent Sequential Brands Group Inc. after no other competent quotes emerged.
A court-supervised auction for the branding rights was canceled, according to court files, leaving Simpson’s company, With You Inc., as the sole bidder at $65 million. Simpson formerly consented to be the so-called stalking horse that sets the minimum rate in the auction, and under insolvency guidelines, she’s needed to finish the purchase if no much better deal is available in.
The auction, which had actually been postponed by a day, was canceled on Thursday. Sequential’s other significant brand names will be cost more than $330 million worth of money and brand-new financial obligation, the business stated in court documents.
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Gainline Galaxy Holdings accepted purchase Sequential’s Active Division and Centric Brands will obtain Joe’s Jeans. The business is set up to ask a judge in Wilmington, Delaware to authorize all of the sales on Nov. 4.
Consecutive declared bankruptcy in August, blaming falling earnings from licensing offers and the pandemic. The business stated its properties deserved about $443 million and it owed financial institutions about $435 million.
The case is Sequential Brands Group, Inc. 21-11194, U.S. Bankruptcy Court, District of Delaware (Wilmington)
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— Bloomberg News