Singer-turned-designer Jessica Simpson refinanced her apparel company just six months after regaining full control of the $1 billion brand.
The previous reality TV star scored a $67.5 million loan from Second Avenue Capital Partners – which is backed by the Schottenstein family, owner of American Eagles Outfitters and DSW – in a deal that pledges all of the assets of The Jessica Simpson Collection, including its brand, as collateral, in response to a source conversant in the deal.
Simpson, 41, and her mother, Tina — who owned 37.5% of the corporate launched 16 years ago — had bought back the remaining 62.5% for $65 million from licensing firm Sequential Brands Group, which filed for bankruptcy protection in August 2021. The duo pledged their personal assets, including their homes, to boost money for the acquisition, in response to the source.
The brand new financing might be used to to retire the old debt from First Eagle Alternative Credit and WhiteHawk Capital and to expand the favored brand, Second Avenue Capital Partners said in a press release.
The Jessica Simpson Collection might be adding several latest products, including skincare and wellness products.Getty Images for Jessica Simpson
“This is best debt on the corporate,” said the source.
Terms of the deal weren’t disclosed, however the source said the financing gives the Simpsons more freedom to make use of the corporate’s “significant” money flow, affording them more latitude to take a position in the corporate as an alternative of specializing in paying down its debt.
Simpson’s fashion line for ladies and girls — which features clothes, accessories, shoes, perfume and luggage — is sold at department shops, including Macy’s and Nordstrom, but the brand new financing is more likely to expand its reach.
The corporate is “on the right track for a record-breaking 2022,” in response to the Second Avenue press release. It has 37 product categories and the corporate is planning so as to add skincare, health and wellness, advantageous jewelry and furniture.
The entertainer had struggled last 12 months to boost enough money to purchase back her brand, hoping to achieve this before Sequential filed for bankruptcy protection. She feared one other buyer would swoop in, but ultimately was the one bidder for her company, in response to court filings.
“This refinancing is incredibly attractive because it offers the corporate more flexibility but more importantly it deepens a very important relationship [with] the Schottenstein family,” said William Susman, who helped secure the primary financing deal.
Jay Schottenstein is the CEO of American Eagle Outfitters.Getty Images for AAFA American Image Awards