Jessica Simpson brand owner Sequential files for bankruptcy

nypost.com
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Sequential Brands, which owns the Jessica Simpson brand and had formerly owned Martha Stewart's brand, filed for bankruptcy protection on Tuesday.
The New York-based licensing company said its "significant debt" of $435 million pushed it into Chapter 11 — an outcome that had been long rumored and first reported by The Post.

The company's stock fell by more than 60 percent after the announcement and trading was halted for a time; it was trading down more than 50 percent in late afternoon trade.

Sequential said it secured $150 million in financing that will support its operations while it tries to sell its seven brands, which until 2019 had included domestic diva, Martha Stewart.

The filing in Wilmington, Del., leaves its remaining brands — Joe's Jeans, activewear brand Gaiam and Avia, SPRI, AND 1 and William Rast, in flux.

Simpson, for one, had been trying to snatch her company back before the filing, but failed to raise enough to acquire her clothing line. Sequential acquired a 62.5 percent stake worth $117 million in Jessica Simpson…
Lisa Fickenscher
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