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Report: Sean Combs Places $3.3 Million Bid to Acquire His Sean John Brand Out of Bankruptcy

Hip-hop entrepreneur Sean “Diddy” Combs has reportedly placed a $3.3 million bid to acquire his own fashion brand, Sean John, out of bankruptcy, according to Bloomberg. The retailer is currently 90% owned by brand management firm GBG USA through a joint venture with Combs, who sold the majority stake in 2016.

Combs is now the stalking-horse bidder for Sean John; other interested buyers can submit offers until Dec. 15, 2021. GBG has been seeking buyers for Sean John since May 2021. The holding company itself filed for bankruptcy protection in July 2021 after divesting several other brands.

“We have taken significant steps over the last year to strengthen GBG USA’s financial position while also conducting a thorough review of all strategic options for GBG USA and its brands,” said Rick Darling, CEO of GBG USA’s parent company Global Brands Group in a July 2021 statement. “This process resulted in the successful sales of our South Korean Spyder retail operation, the inventory and related assets for two of our brands, Spyder and Frye, and an APA [asset purchase agreement] for our Aquatalia brand and business.”

Combs and GBG previously butted heads in February 2021 when the entrepreneur filed two separate complaints filed in New York federal court a week apart, according to WWD:

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  • The first suit sought $25 million for “false endorsement, misappropriation of likeness and violating his publicity rights,” over the launch last fall of a women’s collection with UK-based Missguided Unlimited; and
  • The second suit was filed by nonprofit Citizen Change over the GBG entities’ use of the phrase “Vote or Die,” which is a trademark owned by Citizen Change and Combs’ CE Trademark company.

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