News: Jay-Z's Rocawear Expansion Deal Approved, 300 New Stores On Horizon
Monday, Jun 1, 2009 11:30AM
Jay-Z's Rocawear brand has reportedly been approved for a global expansion into Greater China and will open more than 300 locations as a result of the deal.
The distribution deal was made by Iconix China.
Iconix China has signed an expansion deal for its Rocawear brand, which was co-founded by rapper Jay-Z, in Greater China with Bosideng International Holdings. Bosideng will manufacture and distribute Rocawear men's and women's products from Spring 2010. It plans to open over 300 Rocawear free-standing stores and shop-in-shop concepts within the next three years. (Just Style)
Jay has confirmed the approved deal and shared his thoughts on Rocawear.
"When Iconix purchased the Rocawear trademark two years ago, Neil Cole and I made a commitment to building Rocawear into a global lifestyle brand," he said in a statement. "Our expansion into China is a validation of our joint efforts to bring an authentic interpretation of American fashion to young people around the world." (PR Newswire)
Iconix China President Veronica Chou also commented on the approval.
"We are pleased to partner with Bosideng to grow the Rocawear brand in China," she said in a statement. "Bosideng is a leader in their field and we are certain in Bosideng's ability to utilize their supply chain management and extensive distribution networks to quickly position Rocawear in the Chinese market." (Earth Times)
Rocawear was purchased by Iconix in March 2007.
Iconix Brand said it would pay $204 million in cash plus contingent payments of an additional $35 million of Iconix stock to buy Rocawear, a fashion brand co-founded by rap star Jay-Z. Iconix expects $43 million in Rocawear royalty revenue in the first year. Jay-Z will be in charge of product development, marketing and licensing for Rocawear. His senior management team in licensing, marketing and product development will also join Iconix. Jay-Z will retain his stake in the operating company that manufactures Rocawear men's apparel. (Market Watch)