Jessica's mother lent her famous daughter money to buy back her clothing brand and told the star to 'tighten up' her belt in order to revive the company after financial crisis.
- Jul 10, 2023
AceShowbiz - Jessica Simpson turned to her mother to get money to buy back her clothing brand. The 43-year-old singer took back her fashion label The Jessica Simpson Collection in 2021 after a lengthy battle to wrestle back control.
Sequential Brands bought a major stake in the business in 2015, before the company which was founded in 2005 then filed for bankruptcy in August 2021. Jessica and her mom Tina stepped in to save her brand - which, in 2015, reached sales of $1 billion - before Sequential imploded financially.
Sequential purchased a majority stake in the brand at the time for $353 million, with Jessica and Tina retaining a 37 percent share of the business. They brought back the remainder for $54 million in summer of 2021, with Jessica putting her $11.5million mansion up as collateral.
In an interview with Bustle, Jessica said, "[Sequential was] headed to bankruptcy. I wanted to make sure we did not get caught up in all that." Tina - who divorced Jessica's dad Joe in April 2013 – added, "Honestly, she did reach out to me to borrow money."
"And I said to her, 'Yeah, let's talk about it.' In buying the brand back, I told her, if you're sure you want to do this, you're just going to have to tighten up your belt a little bit. You're going to have to not live not quite as extravagantly."
In May 2022, The Jessica Simpson Collection secured a $67.5 million loan from Second Avenue Capital Partners, which will allow the mother/daughter team to invest money back into their company, and they now have plans to launch a hair-care extension in 2024.
