PHOTO: Sean "Diddy" Combs speaks at the ESPY Awards in Los Angeles, July 17, 2012. (Photo by John Shearer/Invision/AP, File)
Five years after selling a majority stake in his signature streetwear brand Sean John, Sean “Diddy” Combs has regained full ownership and control of the company.
The hip-hop mogul once again became the sole owner after the previous majority owner, Global Brands Group, went bankrupt. Diddy won a bidding war against four other parties, purchasing the fashion company back for $7.551 million through his SLC Fashion LLC.
“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,” Diddy told Billboard in a statement. “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.”
Launched in 1998, Sean John had annual sales of approximately $450 million when Diddy first sold a majority stake to Global Brands in 2016. According to unconfirmed reports, Diddy sold 80 percent of Sean John for an estimated $70 million, Forbes reported. Diddy himself has not confirmed the actual terms of the deal.
The relationship between Diddy and Global Brands became contentious earlier this year when Diddy filed two lawsuits against the company in January and February for using his name, likeness, a slogan from his nonprofit, and attributing a quote to him without his consent.
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When Diddy learned Global Brands had filed for bankruptcy in the summer, he submitted an initial $3.3 million bid in bankruptcy court, positioning him as the stalking horse, meaning any other bidders would have to outbid his offer.
Due to interest from other parties, Diddy doubled his offer, but still faced competition from a company called United Ventures LLC – which also submitted a $7.5 million bid for a cash purchase according to WWD.
The company has declared Diddy the winner of the bidding process and a judge is set to approve the sale at a hearing. Diddy’s recent statements about regaining ownership are in step with his sentiments in the late 1990s when he first launched the brand.
“When we started Sean John, it was my dream to build it into an aspirational brand for the young consumer,” Diddy said.
Users on social media lauded Diddy’s business savvy for getting his company back for a steal, especially considering he sold the majority stake for considerably more. Others celebrated Sean John being fully Black-owned again.
“Diddy just bought Sean John out of bankruptcy for $7.5M. Five years ago, he sold a majority stake in Sean John when the brand did $450M annual sales. Flipped his own brand and got it back. Gotta love it,” Trapital founder Dan Runcie tweeted.
“That’s how you come full circle. Big ups to Diddy!” @WendellMosby tweeted. “The rebrand of them jump suits finna be crazy,” @motorolasota added.
“Sold it for 70 million Buys it back for 7.5 million wow,” @CtoBanks tweeted. “Diddy buying the dip,” @zacguerrini tweeted.
“lmao now thats goated nigga bought the dip fr he just better hope liquidity was taken at the bottom if ykyk,” Wrote @atxjae.
One user said Diddy should never have sold his brand in the first place and advised Black-owned companies to keep them for the long-term.
“Once he sold it that sh*t ran to the floor. Black owners stop selling your hard work. Versace n Gucci are still in their family,” @vechris tweeted. “Us? We see money n sell everything. Pathetic. Rebrand n shut it down again.”
PHOTO: Sean “Diddy” Combs speaks at the ESPY Awards in Los Angeles, July 17, 2012. (Photo by John Shearer/Invision/AP, File)
