Jessica found her calling as a musician when she sang in church choirs growing up. At 17, she got signed by Columbia Records to release her debut album that garnered commercial success. After releasing certified gold albums that made it to the Billboard charts, Simpson decided to expand her reach in Hollywood through her talent and knowledge about retail. In 2005, she collaborated with a retail business to launch a shoe line through her company, The Jessica Simpson Collection. After receiving positive reception, her brand slowly increased its product line to cater to different customers.
Today, her business has been worth $1 billion. She sells products in 30 different categories, offering quality at a lower price than high-end brands. Her company has become a success story that sells fashionable yet comfortable clothing and accessories to everyone globally while managing to stay afloat during turbulent times.
The Beginning Of A Retail Empire
Simpson was at the prime of her reality-show career in 2005. She wrapped up her three-season smashing hit show Newlyweds: Nick And Jessica, which aired her life after marriage. After shooting for the reboot, The Dukes Of Hazzard, the singer and her mother Tina began talking to various merchandising brands to launch a retail business that would fall in line with the movie's release date. Then the Jessica Simpson Collection was established.
According to Market Watch, the mother-daughter pair chose the Camuto Group. Vince Camuto founded the company in 2001, who was charmed by the idea of working with influential Hollywood stars. The trio struck a deal that Simpson would remain the master licensee with her name on the retail accessories while the brand would own 25% of the company.
The group had first planned to introduce a line of Daisy Dukes during the movie's release. But Simpson initially risked and launched the high-heeled cowboy boots, which resulted in the product being a huge success, and the company began rolling out new products. The Jessica Simpson Collection launched jeans, accessories, perfume, dresses, lingerie, and 25 more product lines. By 2010, the company's retail value was $750 million, as reported by Bloomberg.
A Billion-Dollar Company
While $750 million was a significant milestone to cross in 2010, when celebrities had attempted and failed at their business empires, Jessica Simpson Collection was yet to conquer the big billion figure. In 2014, the company achieved the impressive feat of grossing $1 billion in revenue sales. While the number was big, Simpson earned 1.13% of the total earnings, just $13 million.
After Vince Camuto passed away in 2015 due to his battle with cancer, the mother-daughter duo felt lost trying to manage the $1 billion retail empire. Simpson sold 62% of the company to Sequential Brands for $117 million in 2015, while Camuto’s widow owned 25% of shares, leaving Simpson 12.5%. The singer shrewdly ensured to put in the contract that if Sequential Brands ever put the company for sale, she would have the final say in the business, as stated by Celebrity Net Worth. After going on a multi-billion debt-funded buying spree, the company suffered a sequential bankruptcy. The acquisition strategy worked for a limited time until the company's value plummeted in the stock market.
Reclaiming The Throne
In February 2021, Sequential Brands officially filed for bankruptcy. During this time, the company began looking for buyers for their assets under the law. Just as many interested buyers planned to acquire the Jessica Simpson Collection, the mother-daughter duo met with an investment bank to put together an offer to gain complete ownership of the company. They had plans to reclaim the name, brand, and license of the retail empire.
Jessica made an offer to buy the company for $65 million in cash that would be funded by her personally. According to the original contract signed by the star while selling to Sequential, she had absolute rights over the sale of the company, which ensured Simpson’s offer was the only valid one in the court. In August 2021, she submitted the offer that the court accepted two months later.
As mentioned by NY Post, in November 2021, Jessica Simpson had officially gained 100% ownership of her brand Jessica Simpson Collection, which meant that from now on, she would earn 100% of the profits made by the company. While the actress only made $13 million when the company was valued at $1 billion, now she would make $200 million based on her 20% profit margin when the company reaches the one-billion milestone.
During the pandemic in 2020 and 2021, Jessica Simpson Collection still managed to earn $500 million in sales despite the turbulent market condition of Sequential Groups. With the company under the complete control of Jessica and Tina Simpson, the mother-daughter duo is all set to regain the billion-dollar mark and expand the retail empire with new product lines and trend-setting accessories.
Sources: Market Watch, Bloomberg, Celebrity Net Worth, NY Post