Rapper and business mogul Sean Combs has reportedly placed a $3.3 million bid to buy back the assets of Sean John after the majority owner of the firm filed for bankruptcy, according to Bloomberg.
GBG USA Inc. owns 90% of the Sean John brand through a joint venture with Combs, according to court papers filed and sighted by Bloomberg. The brand management firm and holding company, according to the Wall Street Journal, reportedly filed for bankruptcy in July this year.
GBG USA Chief Financial Officer Mark Caldwell, in court documents sighted by Bloomberg, described the Sean John brand as a “crown jewel” of the company’s brand portfolio.
Combs started the fashion and lifestyle brand in 1998 and sold 90 percent of the brand in 2016. In 2016, Sean John reportedly generated about $450 million in annual retail sales.
However, the coronavirus pandemic took a toll on the finances of the company, leading GBG USA Inc. to file for bankruptcy.
Since May, GBG has been looking for a buyer and December 15 was set as the deadline to receive bids from potential buyers.
According to Allhiphop, Sean John was a historic brand for urban fashion. The platform further reports that it was one of the first urban celebrity-driven fashion brands to find prime placement in Macy’s department stores in the early 2000s.
Combs has not publicly spoken about the deal but according to TMZ, sources close to the business moguls say he is very excited about the prospect of reacquiring Sean John and if successful, he plans to reinvigorate the brand.
Despite Combs’ interest in buying back the brand he established, the brand is also open to other bidders.