A lawsuit filed by Tarrant Apparel Group in New York accuses pop star Jessica Simpson of sapping millions in sales by refusing to promote clothing lines distributed by the company and even proclaiming her favorite jeans were those of a rival denim maker.
The Los Angeles-based apparel company is reportedly seeking $100 million in damages for breach of contract from Simpson and her licensing apparatus that includes the firms Camuto Consulting Group Inc., VCJS LLC and With You Inc. Simpson signed a three-year deal with Tarrant in 2004 to develop the brands JS by Jessica Simpson, Princy and Sweet Kisses.
At the outset of the deal, Tarrant had high hopes for the celebrity’s apparel and estimated minimum net sales would be $70 million in the first three years, according to Securities and Exchange Commission documents. For its part, the company was to pay sales and advertising royalties, respectively, of 8 percent and 3 percent, and already made a $2.2 million payment at the end of 2004.
But the Simpson lines quickly ran into trouble. In the lawsuit, Tarrant claims retailer Charming Shoppes Inc. pulled back from an $8 million order of JS clothes after Simpson brushed off appearances to back the apparel.
Tarrant asserts Simpson further imperiled sales by telling the press in June of 2005 that her favorite jeans were made by Los Angeles-based True Religion Apparel Inc. and failing to take part in advertisements for her own clothes. “Publicity and retail support for Princy and JS by Jessica Simpson continued to dwindle with the absence of the celebrity behind the product,” court documents read.
The Simpson episode isn’t the only celebrity mishap for Tarrant. Last month, the company terminated a license agreement to make fashions under the brand House of Dereon by Tina Knowles (singer and actress Beyonce Knowles’ mother).
And Simpson isn’t new to legal squabbles involving her licensing arrangements. Icon Licensing Group LLC sued Jessica Simpson Brand Management LLC last year for not paying commission on a $15 million deal to put the Simpson name on various merchandise, including clothes.
