The submitting on Tuesday was anticipated, provided that again in December the model advertising and marketing and licensing firm indicated it had put itself and its belongings on the promoting block and was exploring strategic options.
Sequential additionally owns Joe’s Denims, Gaiam, And1, Avia and William Rast, however Jessica Simpson is the most important model within the portfolio.
WWD was first to report on Aug. 5 that Sequential offered its Ellen Tracy and Caribbean Joe Island Provide Co. manufacturers to the GMA Group. Ellen Tracy offered for $17 million and Caribbean Joe was offered for $3 million. The sale was made by Model Matter LLC, a subsidiary of Sequential.
GMA, a New York Metropolis-based, privately held, 30-year-old agency that additionally owns the Capelli and Ballet manufacturers, could be a probable contender for Sequential’s remaining manufacturers, or a few of them. Capelli has a variety of merchandise together with equipment, house items, sporting items and health gear. Ballet is a jewellery model.
One other potential bidder is Jessica Simpson herself. Sources have mentioned Simpson and her mom, Tina Simpson, have been working with William Susman’s Threadstone agency to lift cash to purchase again the Jessica Simpson enterprise. Sequential purchased the grasp license for the sprawling way of life model in 2015 and is believed to have maintained it with annual gross sales of round $1 billion, pre-pandemic.
In April, Sequential offered its Heelys model to BBC Worldwide for $11 million, and in April 2019, Sequential offered its Martha Stewart and its Emeril Lagasse house divisions to Marquee Manufacturers for $166 million.
Media stories cited courtroom papers indicating that Sequential has money owed of $435 million and belongings of $443 million. Sequential had a debt load of $463.2 million, with a market capitalization of simply $21.9 million, in keeping with S&P Capital IQ, as reported final Might. Round that point, William Sweedler, Sequential’s govt chairman, left the corporate. The corporate additionally managed to get waivers on its credit score settlement.
Sequential mentioned Tuesday it would pursue the sale of “all or considerably all of its belongings underneath Part 363 of the U.S. Chapter Code.” An open public sale on the belongings is predicted to happen.
https://wwd.com/business-news/retail/sequential-bankruptcy-jessica-simpson-1234906313/ | Sequential Manufacturers Group Goes Bankrupt – WWD