Diddy Wants to Bring Clothing Line Out of Bankruptcy
Diddy may be a music and entertainment mogul but he is looking to solidify his place in fashion as well. The suave hip-hop mogul is trying to save his legendary urban meets sophisticated fashion brand from bankruptcy. Diddy branched out into fashion in the late 90s and wants his legacy to remain intact for centuries to come. He’s gone through a lot with the brand, including a multi-million dollar lawsuit with a model for a breach of contract.
Diddy places bid to get Sean John out of bankruptcy
Bloomberg reports that “Diddy” Combs has bid $3.3 million to buy Sean John out of bankruptcy. He launched the line in 1998 amid his heights as the founder of Bad Boy Records and during his relationship with Jennifer Lopez.
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GBG USA Inc., a bankrupt brand management firm, now owns 90% of the brand via a joint venture with Diddy. The report notes that an entity affiliated with Diddy has been named the stalking-horse bidder for the clothing and accessories company, setting a floor for further bids on the brand. Potential buyers can continue to submit offers until Dec. 15. Diddy has yet to publically comment.
GBG USA Chief Financial Officer Mark Caldwell describes Sean John as a “crown jewel” in court documents. The bankruptcy filing came in July 2021.
The mogul has been accused of not paying celebrities for brand partnerships
MTV News first made it known in 2005 that the top male model of its time sued Diddy for unpaid money on his modeling agreement during a shoot that went wrong for Sean Jean. In the suit, he alleges he signed a $1.2 million contract for an advertising campaign. Tyson says he was to be paid four payments of $300k as part of the deal.
Beckford claims Sean John paid him for the first payment but was delayed for the second and third before. He claims Diddy skipped on the fourth altogether. But Diddy’s team denied Tyson’s allegations, saying in the suit: “While we don’t generally comment on pending litigation, we feel this action against us is without merit. We plan on vigorously defending ourselves.”
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Beckford’s team says that instead of paying up, Sean John pulled the ads. Tyson’s team claimed in the suit: “They had a contract that was in existence that was not honored, and in addition to that, my client’s image was continually used to market, promote and sell clothing distributed and made by Sean John.”
In a recent 2021 chat with Vlad TV, Beckford says he learned Diddy became jealous of his popularity from the campaigns, saying: “I heard rumors that they felt like I was getting too big and was going to make him obsolete,” Beckord recalls. “How am I going to make him obsolete? He’s his own [star]. Sean John is him, I’m just a face and I felt like maybe it was a factor like that. They didn’t want me to be as big as I was over at Ralph (Lauren). But for me, I came in the situation just trying to do what I was hired to do and blow s— up like I normally do.”
