Rocawear sold to Iconix Brand Group for US$204 million
Major player Jay-Z has sold his clothing line Rocawear for $204 million to Iconix Brand Group, Inc.
As co-founder of Rocawear, Jay-Z will still be in charge of all product development, marketing and licensing for the brand. Jay-Z’s senior management team in licensing, marketing and product development will also join Iconix.
Iconix is forecasting the Rocawear brand will generate approximately $43 million in royalty revenue in its first twelve months under the Iconix umbrella. Rocawear currently has annual retail sales of over $700 million.
According to the official press release, Jay-Z said, “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.”
As part of the arrangement, Iconix will also enter into a separate equal joint venture with Jay-Z to establish a new brand management and licensing company. The first brand will involve the rapper himself and will be a luxury line called “Shawn Carter Collection,” which will debut in 2008.