Published by nwilliams on Monday, July 13, 2009 at 3:00 pm.
It’s real in these streets for celebrity fashion lines! Last month Jennifer Lopez’sclothing line Sweetface went bankrupt and now Kimora Lee Simmon’s line Baby Phat might be headed for the same fate.
The Wall Street Journal reported that Kellwood Co. - an apparel manufacturer who’s brand’s include Baby Phat, Fabulosity, Phat Farm, Vince, and Xoxo, among others - may have to file for Chapter 11 bankruptcy if they can’t come up with the money to pay a $140 million bond issue by Wednesday. Kellwood has over $500 million in debt and $800 million in annual sales and according to the report “the twin effects of a heavy debt load and a sharp drop in consumer spending have crushed the company’s financial results.â€
Russell Simmons launched Phat Farm clothing in 1992, while his, then wife, model/designer Kimora Lee Simmons, started Baby Phat in 1999. Russell sold Phat Farm and Baby Phat to Kellwood in 2004 for $142 million in cash plus performance incentives (at least he cashed out before the hard times hit!) though Kimora retained her position as “principal creative arbiter†for Baby Phat.
So if it all falls down Kimora (and some 2,000 employees that Kellwood employs) might be out of a job and we may see the end of Baby Phat clothing. You mad?
Read about this story at: Â BET.com
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