Jay-Z has sold his Rocawear clothing brand for $204 million in cash to the Iconix brand group. These are the people who’ve licensed brands such as Candies, Joe Boxer, and Mudd. Jay-Z could also gain another $35 million in Iconix stock if the brand meets certain performance requirements over the next 3-5 years. If you think Jay’s just handing over his clothing brand, don’t be dumb, lol. He’s still going to be in charge of all product development, marketing and licensing for Rocawer. Of the business deal, Jay had this to say:
“Iconix is pioneering a new brand management model and by combining Rocawear with their platform, my team and I can focus on our strengths in design and lifestyle
marketing.” Jay-Z said. “I’m also looking forward to working with Neil Cole and the Iconix organization on other brand development opportunities.”
Rocawear’s annual retail sales are over $700 million, and Iconix is forecasting that the brand will generate almost $43 million in royalties during the first year of the agreement. This is definitely a very lucrative deal for Mr. Carter, and it doesn’t stop here. Iconix and Jay-z have also reached a deal to form a new luxury brand called The Shawn Carter Collection, which will be in stores in 2008. Jay has clearly proven that above all he is a true businessman.
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