On the heels of a preliminary victory in her case against the Jones Group, Rachel Roy has been dealt even more good news. Topson Downs, a Los Angeles manufacturer, announced today that it had acquired a majority interest in the Rachel Roy brand from The Jones Group. The deal will reportedly put an end to the parties’ ongoing legal battle. You may recall that the NYC-based designer slapped the Jones Group with a $20 million lawsuit this past April for “ruining” her eponymous womenswear label. The Jones Group, which was recently acquired by private equity firm, Sycamore Partners, bought 50% of Roy’s brand in 2008, but cut ties with the designer in March.
According to Roy’s complaint, the Jones Group was “working to eviscerate her brand by abruptly shutting down its operations, firing personnel that run the business, and stonewalling all efforts by Ms. Roy to continue to conduct business.” While Roy maintained creative control of her namesake brand for the duration of her venture with Jones, she claims that Jones conducted business behind her back.
Topson Downs said it will form a partnership with Roy to develop, market and license the fashion brand that Roy established in 2005. Topson Downs will assume all operations from The Jones Group, including re-launching the designer line and expand the contemporary RACHEL Rachel Roy collection, which has been sold at Macy’s. Roy will retain all creative control of her name.
In a statement from the brand, Rachel Roy says: “I’m thrilled to be working with Topson Downs in this next stage of the Rachel Roy legacy. My partners and I share a vision on how to nurture and grow a brand through strategic investment to position it for great success and longevity.”