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Article: Simmons gets $140 million for clothing: hip-hop impresario's pockets are 'phatter' with sale of urban wear clothing line.(B.E. 100S)
- Article from:
- Black Enterprise
- Article date:
- March 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Earl G. Graves Publishing Co., Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In a deal that surpasses the sale of his successful rap record label Def Jam, which sold in 1999 for $100 million, Russell Simmons, CEO of Rush Communications (No. 14 on the BE INDUSTRIAL/SERVICE 100 list with $260 million in sales), has sold his urban clothing empire, Phat Fashions L.L.C. to Kellwood Co. for $140 million. At press time, the deal was expected to close in early February.
Under the terms of the agreement, Phat Fashions, which includes Phat Farm and Baby Phat, will become a subsidiary of Kellwood, the $2.4 billion St. Louis-based clothing marketer. The buyout follows a licensing deal that was landed late last year for Run Athletics activewear for ...