Sean “Diddy” Combs got himself an early Christmas present this year: he bought his Sean John brand, the game-changing streetwear label he created in 1998. .
And while it may be a bit more expensive than he initially expected, the winning bid of $7,551 million is well worth it for him to regain control of his eponymous brand, sources say. said.
“I launched Sean John in 1998 with the goal of building a high-end brand that broke with tradition and introduced hip-hop to haute couture on a global scale,” says Combs. “Seeing how streetwear has evolved to rewrite the rules of fashion and impact culture across categories, I am ready to take back brand ownership, build a team of visionary designers and global partners to write the next chapter of Sean John’s legacy.”
As reported, entertainer and entrepreneur who filed for bankruptcy earlier this month to buy the Sean John brand for $3.3 million through an acquisition company called SLC Fashion LLC. As such, he is positioned as a stalking horse, meaning any other bids will have to exceed his offer.
Although four other parties reportedly also made offers for the brand and an auction was held on December 20, Combs ultimately prevailed. At the start of the process, 45 potential buyers were contacted about purchasing the brand. According to court papers, United Ventures LLC submitted a bid with a cash purchase price of $7.5 million and is now considered a backup contractor. Final approval of Combs’ offer is expected to be held on December 22.
In July, the North American branch of Global brand group, the Hong Kong-based company that owns 90% of the Sean John trademark, has filed for Chapter 11 in New York and is looking to sell its properties, which include Aquatalia, Ely & Walker and Tahari alongside Sean John .
Combs is said to have retained a 10% stake in the brand when it sold it to GBG in 2016. Court papers described the brand as the “jewel” of GBG’s portfolio and said The bids submitted by Combs reflect the highest and best available for properties.
When most of the interest in the brand was sold to GBG five years ago, it had about $450 million in annual retail sales and operated on a licensed model. On the brand’s 20th anniversary, plans have called for building it into a $1 billion business, one that will include international expansion alongside retail stores. and switch to more categories.
But the relationship with GBG has become difficult in recent years. In February, Combs filed a lawsuit against GBG for $25 million for “falsely endorsing, misappropriating his likeness and violating his right to publicity” during the launch of a women’s collection last fall. with British fast fashion retailer Missguided Unlimited. A few days later came a second lawsuit from his nonprofit, Citizen Change, over GBG’s use of the phrase “Vote or Die,” a trademark owned by the organization.
The lawsuits have now been dropped, according to the sources.
Within two years of its launch, the Sean John brand was present in 1,200 stores and generated $200 million in sales. It has hosted gorgeous runways in New York, and Combs won the US Men’s Top Fashion Designer of the Year award in 2004, beating out Ralph Lauren and Michael Kors.
With an estimated net worth of $885 million, Combs has had a multi-disciplinary career that includes not only fashion but also music, television production, athlete drinks, and vodka. As president and chief executive officer of Combs Enterprises, he oversees Bad Boy Entertainment, Combs Wine & Spirits (Ciroc and DeLeon), Aquahydrate, Revolt Films, TV & Media, and Capital Prep Harlem.
https://wwd.com/business-news/mergers-acquisitions/exclusive-sean-combs-regains-control-of-sean-john-brand-1235022144/ Sean Combs Regains Control of Sean John Brand – WWD