*It was pretty darn obvious that Rocawear was on its way out when even Jay Z (shown above) stopped wearing the clothes. But some people just have to learn the hard way. Take the Iconix Group for example.
The company purchased Rocawear for $204 million in 2007. Shortly thereafter, business bombed. The urban line once racked up $700 million in annual sales. But like the Dow on Wall Street, Rocawear’s appeal eventually diminished among young consumers, and so did revenue sales.
The company has hit a financial bottom, a new lawsuit claims. A New York City wholesaler is battling Jay-Z’s clothing label over a six-figure debt.
iSource NYC filed suit against Rocawear to recover $450,000 leftover from a $1 million order. Court papers state that iSource manufactured “specially ordered goods [with] the ‘Rocawear’ brand name imprinted on [them],” and shipped them from Pakistan to the Big Apple in April 2012.
The order was fulfilled, but as of last summer the payments dried up. iSource is suing for the outstanding balance plus 9 percent interest.
Rocawear’s struggles have been ongoing as of late — from being exposed for using dog fur to a $500 million sales dip and slicing its staff in half.
Even with contracting Ciara as a spokesmodel, a partnership with Pharrell Williams‘ Billionaire Boys Club and a deal to sell clothing out of Brooklyn’s Barclays Center, the company still hasn’t been able to climb out of debt.
Damon Dash attends the Buckler by Andrew Buckler men’s collection Fall 2012 presentation during Mercedes-Benz Fashion Week on February 8, 2012 in New York City
*Hip-hop mogul Damon Dash has been ordered to pay $330,000 to a former business partner who accused him of reneging on a 2006 loan.
Tom Nastos, who ran an apparel company which distributed the Rocawear clothing line the star launched with his former pal Jay Z, claims he fronted Dash $240,000 seven years ago on the promise that he would pay it back. When he failed to do so in a timely manner, Nastos filed suit in New York and demanded his money back.
The music executive didn’t respond to the accusations so Nastos was awarded a default judgment – only for Dash to later challenge the claim, insisting he wasn’t properly served the legal papers. However, a Manhattan Supreme Court judge ruled against Dash on Thursday (May 9) and told him to return the funds plus an additional $90,000 in interest, reports the New York Post.
The ruling is the latest blow to Dash’s finances – his money woes first hit the headlines in 2009, when two of his New York properties went into foreclosure and he was accused of owing $2 million in state taxes.
Jay-Z performing live during the Radio 1 Hackney Weekend in London.
(June 23, 2012)
*Jay-Z and his partners were slapped with a $7 million lawsuit by a clothing designer who claims he’s owed unpaid royalties for designing their logo for Rocawear.
[SUBSCRIBE TO EURWEB's RSS FEED]
Clothing designer Dwayne Walker claims in a lawsuit filed in Manhattan Federal Court, New York, yesterday: ”The logo has become universally recognized as an iconic symbol of Jay-Z, one of the most successful recording artists in the history of popular music.”
Walker claims to have devised the logo in 1995, when Jay and his former business partners Damon Dash and Kareem ‘Biggs’ Burke founded the record company, which is now a subsidiary of the Universal Music Group.
Last month, the 42-year-old rapper was sued for plagiarism by author Patrick White, who alleges Jay stole portions of his writing and then used them for his own memoir, “Decoded.”
In the lawsuit, Patrick claims: ”In 2009, my personal computer was compromised, resulting in my personal work to be used in Jay-Z’s book ‘Decoded’ which was released in 2010.
”The book contains various expressions/colors/phrases which correlates to my work. After contacting or attempting to contact the co-author, I got no reply.”
*The New York Yankees could be rocking some new styled gear pretty soon. On Wednesday, Jay-Z officially announced a new partnership between the baseball team and his beloved brand Rocawear.
This partnership means Rocawear will be riding high at Yankee stadium and integrated into several promotions throughout the season.
Via a press release, Jameel Spencer, executive vice president of marketing for Rocawear shared in the excitement saying that the rapper/entrepreneur’s winning spirit fits right in.
“Jay-Z has been a long-time fan of the Yankees, regularly attends games and has even included his favorite team in song lyrics, so this was a natural partnership. Rocawear, along with Jay-Z are very excited to be working with the Yankees for the 2012 season. We feel another championship in ’12!”
And it looks like Rocawear is in an all-out marketing haul since the deal was announced just days after the company ran its first-ever commercial.
“My goal was to have one gold album and that was it,” says JAY Z in the spot. “And then it became, I want to show that an artist can ascend to the executive ranks.” Ultimately it has been JAY Z’s ability to inspire his customers that has afforded Rocawear over 10 years as the number one brand in its’ space. JAY Z continues, “Rocawear just keeps reinventing itself and redefining itself every single day.” #Marcy2Barclays (Life and Times).
*While all seems flowers and candy in the world of Hip Hop mogul Jay-Z since the birth of his baby girl, his good name isn’t fairing too well in the business market.
Rocawear clothing, the company he co-founded with producer Damon Dash in 1999, executed a massive layoff and is currently on the verge of chapter 11.
According to reports, the brand gave pink slips to half the company’s staff in the men’s and boys apparel departments on Jan. 6, citing economic reasons.
Jay-Z actually doesn’t have much to do with the clothing company anymore, since he sold it in 2007 to Iconix Group, a licensing company that own Candie’s, Ed Hardy and Signature Apparel Group LLC, which is owned by Jacqueline Laurita.
On top of all of that, Laurita’s Signature Apparel of the “Real Housewives of New Jersey” star was hit with a lawsuit for $2.8 million in damages form one of its Rocawear licensees, ROC Fashion.
Apparently she designed, made and distributed the brand’s junior clothing that went belly up two years ago.
*Looks like Jay-Z is still selling his “Occupy All Streets” t-shirts, despite claims yesterday to the contrary.
As previously reported, the New York Daily News posted a piece saying Jigga’s clothing company Rocawear had suspended sales of the tee supporting the Occupy Wall Street movement in the wake of widespread criticism. But according to a post on the Roc4Life blog, the shirts weren’t pulled, they were sold out.
The blog post states:
Holy smokes. Those “Occupy All Streets” t-shirts sold out faster than Rick Perry can name three agencies. If you missed out on the first batch, we’ve got your back like scoliosis. Rocawear has already restocked the fancy black tops — available in all sizes via Rocawear.com.
“Jay-Z, as talented as he is, has the political sensibility of a hood rat and is a scrotum,” one of the protest organizers said in response to the Occupy All Streets shirts. “To attempt to profit off the first important social moment of 50 years with an overpriced piece of cotton is an insult to the fight for economic civil rights known as #occupywallstreet.”
Russell Simmons, the music industry mogul, defended Jay-Z on Twitter. “No one ever said the proceeds were not going to the cause that’s media’s spin,” tweeted Simmons.