In an interview with Bustle, the “Dukes of Hazzard” star revealed that her collaboration with licensing company Sequential Brands, which bought a majority stake in JSC in 2015, turned problematic. Her choices were to abandon her dream of sustaining the company or to liquidate her assets to regain complete ownership.
Choosing the latter, Simpson liquidated her stocks and used her California home as collateral to reclaim full ownership of her fashion brand in 2021. Despite the financial strain and loss, Simpson, with the support of her mother, Tina Ann Drew, maintains that she made the right decision.
Simpson’s story isn’t unique in the business world. After Sequential Brands bought the Jessica Simpson Collection, they tried to cut costs which often results in the dissolution of the acquired company. The situation worsened with Sequential inching towards bankruptcy due to COVID-19’s impact on physical retail brands.
Simpson decided to regain control of her brand, not only for herself but also as a role model for her three children. She, along with her mother, who owned 37% of JSC, repurchased their remaining shares for $54 million in 2021, just before Sequential Brands filed for Chapter 11 protection, according to Financier Worldwide.
Reacquiring her company was a challenging process for Simpson. She had to liquidate her stock portfolio and use her mansion as collateral. With her mother’s financial support, they obtained a $67.5 million loan from Second Avenue Capital Partners in May 2022. This move is to kick-start their new venture: an original JSC hair care line, per PR Newswire.
Although Simpson has to tighten her financial belt and lead a less extravagant lifestyle, she remains focused on expanding her brand and returning to the music scene. Her journey might be tough at the moment, but there’s no doubt about the resilience and transformation of Jessica Simpson yet to unfold.