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JAY-Z: Selling That Roc

Posted by Karu F. Daniels on Mar 6th 2007 3:21PM
Filed under: Entertainment Newswire

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By Karu F. Daniels, AOL Black Voices

It was announced on March 6 that Jay-Z sold Rocawear clothing for $204 million cash.It's official.

Jay-Z has sold his Rocawear clothing empire.

It was announced this morning that the Iconix Brand Group, Inc. has entered into a "definitive agreement to purchase the brand Rocawear" for $204 million in cash with contingent payments of an additional $35 million of Iconix stock -- based upon performance thresholds over the next three to five years.

Rocawear, which is recognized as a leading lifestyle apparel brand, reportedly has retail sales of over $700 million, annually.

The line was founded by the hip-hop icon turned Def Jam Records president, and his former Roc-A-Fella Records partners Damon Dash and Kareem "Biggs' Burke in 1995.

Jay-Z (legally known as Shawn Carter) will remain an integral part in the Rocawear -- heading up all product development, marketing and licensing for the brand.

The statement indicates that: "he will retain his stake in the operating company that manufactures all of the Rocawear men's apparel and his two partners in that business, Alex Bize and Norton Cher, will continue to run that company and enter into a long-term license agreement with Iconix for the core young men's apparel category."

As part of the new deal, Iconix will also enter into a separate equal joint venture with Shawn Carter to establish a new brand management and licensing company that will identify brands -- the first brand will be the luxury brand called "Shawn Carter Collection" set to debut in 2008.

"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."

Iconix, a publicly traded New York based company, owns, licenses and markets a growing portfolio of consumer brands including Candies, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Gof, Mossimo and Ocean Pacific.

The conmpany recently entered into a similar deal with the Danskin brand.

Here's some interesting trivia: Hip-hop impresario Russell Simmons founded and launched his Phat Farm clothing empire in 1992. He sold it in 2004 for $140 million.

Will Diddy and his massively popular Sean John line the next one to be sold?

BV Extras:

-- The oft-retired rap mogul got all the way live with AOL recently. See Jay-Z live.

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