December 23, 2021
While it may have cost a little more than he had originally expected, the winning price of $7.551 million was well worth it for him to regain control of his eponymous brand, sources said told Women’s Wear Daily (WWD) exclusively.
“I launched Sean John in 1998 with the goal of building a premium brand that shattered tradition and introduced hip-hop to high-fashion on a global scale,” Combs said. “Seeing how streetwear has evolved to rewrite the rules of fashion and impact culture across categories, I’m ready to reclaim ownership of the brand, build a team of visionary designers and global partners to write the next chapter of Sean John’s legacy.”
As reported, the entertainer and entrepreneur submitted a bid in bankruptcy court earlier this month to buy the Sean John brand for $3.3 million through an acquisition company named SLC Fashion. As such, he was positioned as the stalking horse, meaning that any other bids would have had to exceed his offer.
Although four other parties reportedly also put in offers for the brand and an auction was held on December 20, ultimately Combs prevailed. At the beginning of the process, 45 potential purchasers were contacted about buying the brand.
According to court papers, United Ventures submitted a bid for a cash purchase price of $7.5 million and is now deemed the backup bidder.
In July, the North American arm of Global Brands Group, the Hong Kong-based company that owns 90% of the Sean John label, filed for Chapter 11 in New York and sought to sell its assets—which included Aquatalia, Ely & Walker, and Tahari, in addition to Sean John.
Combs is believed to have retained a 10% stake in the brand when he sold it to GBG in 2016. Court papers described the brand as the “crown jewel” of the GBG portfolio and said the bid submitted by Combs reflected the highest and best available for the assets.
Research contact: @wwd