Singer-turned-designer Jessica Simpson refinanced her apparel company just six months after taking full control of the multi-billion dollar brand.
The former reality TV star secured a $67.5 million loan from Second Avenue Capital Partners—backed by American Eagles Outfitters and the DSW owner Schottenstein family—in a deal that mortgages all of the Jessica Simpson Collection assets, including her Brand is also included. as collateral, according to a source familiar with the deal.
Simpson, 41, and his mother, Tina — who owned 37.5% of the company they launched 16 years ago — bought the remaining 62.5% back from licensing firm Sequential Brands Group for $65 million, which filed for bankruptcy protection in August 2021. was filed for. Both, according to the source, mortgaged their personal assets, including their houses, to raise funds for the acquisition.
Second Avenue Capital Partners said in a statement that the new financing will be used to eliminate old debt from First Eagle Alternative Credit and Whitehawk Capital and expand the popular brand.
“It is a better debt on the company.
Terms of the deal were not disclosed, but the source said the financing gives the Simpsons more freedom to use the company’s “significant” cash flow, giving them more latitude to invest in the company to pay off their debt. Instead of focusing on
Simpson’s fashion line for women and girls — which includes clothing, accessories, shoes, perfumes and accessories — is sold at department stores including Macy’s and Nordstrom, but the new financing is likely to expand its reach.
According to a Second Avenue press release, the company is “on target for a record-breaking 2022”. It has 37 product categories and the company plans to add skin care, health and wellness, fine jewelry and furniture.
Hoping to do so before Sequential filed for bankruptcy protection, the entertainer struggled last year to raise enough cash to buy back its brand. According to court filings, she feared another buyer would swoon, but was in the end the sole bidder for her company.
“This refinancing is incredibly attractive because it provides the company with greater flexibility but more importantly, it deepens an important relationship.” [with] Schottenstein family,” said William Sussman, who helped secure the first financing deal.