Rachel Roy has filed a lawsuit against Jones Apparel Group in an attempt to prevent the company from selling her brand to Bluestar Alliance for $14.6 million. This has occurred after Jones closed operations of the brand and is attempting to sell off its underperforming brands as its being acquired by equity firm, Sycamore Partners.
Roy is claiming that the sale is being done without her consent and is therefore a breach of contractual agreement. Roy’s relationship with Jones began in 2008 when she entered into agreements to develop and sell products under the Rachel Roy band. The agreements included a transfer of intellectual property assets including her trademarks, an asset purchase agreement, a licensing agreement, and an employment agreement, where Roy became the artistic director of the brand. Roy alleges that these agreements were drafted by Jones and she did not have a counsel represent her in the negotiations of these agreements.