Sequential Brands Group Inc. is nearing the end of the sale process for some of its brands after filed for chapter 11 bankruptcy protection last month.
According to a source close to the deal, Jessica Simpson and her family are set to close a deal to buy the part of her eponymous brand sold to Sequential in 2015. Jessica and her mother, Tina Simpson, who currently own 37.5% of the brand, are positioning themselves as the hunting horse bidders to buy out the remaining 62.5% of the brand, according to a hearing held last week.
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The Simpson brand was a light point among continuing losses at Sequential, which also owns Joe’s Jeans, And1, Avia and other brands. Sequential filed for bankruptcy at the end of August after “significant indebtedness on its corporate balance sheet” made it unable to operate its portfolio. Sequential seeks to sell all or most of its assets through an auction and auction process that will allow interested buyers to bid on its assets.
According to finances documents, the company had net debt outstanding of $ 452.3 million as of December 31, 2020. To pay off lenders, the company abandoned some of its brands this year. Sequential sold the Ellen Tracy and Caribbean Joe Island Supply Co. brands to the GMA Group for a total of $ 20 million in August. This too sold its Heelys-branded assets to BBC International for $ 11 million in April, and in July it sold its 65% stake in DVS Footwear International LLC to Elan Polo International Inc. for $ 2 million.
According to a Reuters report, Centric Brands LLC, a potential buyer for the Joe’s Jeans line recently increased its bid by 18% to $ 45 million. Galaxy Universal LLC has made a $ 333 million bid for Sequential’s sportswear brands, which include Avia, SPRI, Gaiam, And1 and Swisstech.
Competing offers must be submitted by interested parties by October 25, with a sales hearing set for November 4.
Footwear News has reached out to Sequential for comment.