Jay-Z's Rocawear Brand Cuts Staff, Struggles For Mogul's Support

While Jay-Z is on cloud nine with daughter Blue Ivy Carter, his former pride and joy, Rocawear, seems to be on the verge of chapter 11.

According to the New York Post, the hip-hop clothing brand, which Jay-Z founded in 1999 with producer Damon Dash, laid off half the staff of its men's and boys apparel division on January 6, one day before Jay-Z's wife, Beyonce Knowles, gave birth to the couple's baby girl.

The company cited "economic reasons" for the layoffs in documents filed with the New York State Department of Labor, the Post reports.

Jay-Z sold the Rocawear brand in 2007 for $204 million in cash to Iconix Group, a licensing company that also owns brands such as Candie's, Ed Hardy and Signature Apparel Group LLC, owned by "Real Housewife of New Jersey" Jacqueline Laurita.

In November, the Wall Street Journal reported that Laurita's Signature Apparel, which designed, made and distributed Rocawear-branded juniors' apparel had gone belly up two years prior, was being hit with a lawsuit seeing some $2.8 million in damages from one of its Rocawear licensees, ROC Fashions.

The same month, Rocawear announced that it would start selling $22-a-pop "Occupy All Streets" T-shirts in response to the Occupy Wall Street protests in New York's Zucotti park, though none of the proceeds would go to support the occupiers. The company reportedly ceased sale of the shirts the following week amid harsh criticism.

Jay-Z has retained an interest in Rocawear as part of his 2007 deal, according to the Post, but his contractual obligations to the brand have expired and the rapper has since refused to promote it amid steady, double-digit sales drops.

"Jay-Z doesn't do anything without getting paid a lot of money -- a lot more than Rocawear is generating," a source reportedly to the paper.

Jay-Z - Music News

Comments

[Bootzey Jones]

04:41 PM on 01/25/2012

Why is Jay Z even featured in this article when he doesn't own RocaWear anymore?

[toni63]

01:19 PM on 01/22/2012

the brand had a shelf life the look has seen it's day.....in fashion you are in or out and you need to see the writing on the wall..Rocawear is no different than any other brand. Some evolve and become relevant and some stagnate and sink....sad but true...there are other labels out there as a desgner I have been in their situation , it's part of the game.....!!!! We are priviledged to be able to do what we love....

[Dr of psychology]

06:10 PM on 01/21/2012

...it was "corny" anyway...

[mw-maryland]

01:09 PM on 01/20/2012

It's not so much the clothes but the name you are paying for. Slap a famous name on a simple, plain shirt and the price can triple. If you like brand names start going to thrift stores especially in expensive communities. You'd be surprised.

[MarcBrand]

12:59 PM on 01/20/2012

Jay Z has some excellent business and money managers as well he ain't a fool himself. He knew when he made that deal that the life span of an urban clothing line wasn't long. So he sold it, got his nice chuck of change, and kept it moving. Yet was smart enough to keep a percentage of the company in case it did continue to make money. Jay understands that he is the brand so he can attach his name to companies, products, and services that sell themselves and require little "work" from him and he makes sure it's not just a "face" deal but that he gets some percentage of ownership.

[amajamus]

11:47 PM on 01/24/2012

I wouldn't buy any thing with RW on it . . . let alone Jay Z

[Keonna Martin]

08:52 AM on 01/20/2012

Jay z and Beyonce has nothing to worry about and if Jay doesnt have it than Beyounce does but untill then leave the man alone

[daddyrichg]

12:40 AM on 01/20/2012

He got his money already so he doesn't care one bit about the staff losing their jobs?? I used to admire him but now I despise him as a person! Still rock his music though......

[karmarind]

10:40 AM on 01/20/2012

Da bro done sold out to the man.....

[Deirdre Todd]

10:54 AM on 01/20/2012

He's suppose to get his money,thats why there are so few black millionaires,buisness is buisness,you have to always do whats best for you and your bottom line,Plus they should have known he was the brand, without his endorsing the brand its not gonna sale,but thats not his problem anymore,only a fool goes down with a sinkin ship.....

[conion777]

10:15 PM on 01/19/2012

lee jeans and levi's been around for ever take a look at the big picture

[amajamus]

11:49 PM on 01/24/2012

He said "celebrity brand!!!" DO YOU COMPREHEND?

[conion777]

06:53 PM on 01/25/2012

i do. there is a bigger picture

[WARHUKKER]

09:40 PM on 01/19/2012

"Jay-Z doesn't do anything without getting paid a lot of money! And there it is.

[Astro Girl]

08:22 PM on 01/19/2012

I am not attracted to ghetto/urban wear and has never been trendy oriented. People who can't think for themselves are very trendy oriented.

[Sistagirl Young]

06:31 PM on 01/19/2012

It's way past time my young Brothas and Sistas become more concerned with what goes into their head than what goes on them. I understand style and wantin' to be the (whatever the current word for cool is); but all you potential leaders of tomorrow are doin' is fattenin' the coffers of your idols, and heroes. And other than takin' your money, they don't givea fat rats patoot 'bout any of you. Make them richer and follow their lead in trashin' your women. Wow. Could one aspire to anythang higher? If there was a genuine concern for these young folk they wouldn't put these astronomical prices on their clothin'. But hey they just black kids. Who cares. Buy my music, buy my clothes. Be the first person in jail with my latest design. I wear it 'cause y'all think I'm one of you. Be for real. I'm rich and you wanna be. But keep makin' me richer and maybe one day you too can become anotha black man who cares nothin' for the youth who so devotedly buy anythang they put out. Stop the dumb stuff. NOW. Life.

[wizkid14]

07:54 PM on 01/19/2012

You better preach! LOL co-sign 100%!

[Sistagirl Young]

08:02 PM on 01/19/2012

Hello wizkid14; Thank you so very kindly. Right On to the Right On. Thank you again for the lovely comment. Stay Black. Life.

[amajamus]

11:51 PM on 01/24/2012

Pull your pants up

[Sistagirl Young]

09:22 AM on 01/25/2012

Hello amajamus; Okay, whatever that means. Thank you for commentin' just the same. Life.

[Chery2you]

01:15 PM on 01/19/2012

What is most telling about the brands that many of the Black celebrities is that I have noticed that the celebrity who owns it doesn't wear it. For example when have you seen a picture of Kimora Lee Simmons wearing any of her gaudy looking ornate "Baby Phat" clothing? Or Beyonce on the Red carpet in Dereon? My point is that the celebrities don't wear their own brands, but get rich off of poor people that buy them and proudly wear them.

[LittleRedEngine]

04:27 PM on 01/19/2012

It's not just black celebrities (Nicole Richie, Jessica Simpson, etc..).. Most celebs market to an audience of average income buyers. They themselves can afford to spend more on a higher quality good. Nothing really wrong with that.

[Shantay Riley]

01:13 PM on 01/19/2012

I'm so glad I outgrew brand names anyway. Most people who purchase the crap can barely pay their bills but will pay $80 to have a piece of stitching w/ a name running across their rear ends. Shame, pitiful, then these kids running around with baby phat, baby girl, and apple bottom on their rear ends but can barely read and write. URGHHHH

[Adonijah]

11:19 AM on 01/19/2012

oops: daughter

[Adonijah]

11:19 AM on 01/19/2012

My daughetr told me no one wears Rocawear anymore. You'll be clowned if you do.