Diddy Buys Sean John Out of Bankruptcy for $7.5 Million
Diddy is once again the owner of Sean John after buying the streetwear label out of bankruptcy.
The hip-hop mogul won the rights to the fashion brand he founded for $7.5 million in cash. According to TMZ, he put in an initial bid of $3.3 million but ended up paying more after a bidding war with four other parties.
“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,” he said in a statement.
He plans to relaunch the company, which he sold to Global Brands Group in 2016. “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,” he added.
Sean John filed for bankruptcy under management firm GBG USA Inc., which had a 90 percent ownership stake. When Diddy heard that Sean John was up for sale, he expressed interest in gaining control once again. The deal is set to be finalized this week, barring any objections.
Back in February, Diddy filed a $25 million lawsuit against Sean John and GBG USA, alleging that the brand used Diddy’s image, likeness, and persona without his permission to promote Sean John’s women’s clothing line with retailer Missguided. His nonprofit, Citizen Change, also filed a suit over GBG’s use of the phrase “Vote or Die.”
Both lawsuits have now been dropped.