Rachel Roy’s Legal Battle Is Over

In April of this year, womenswear designer, Rachel Roy sued The Jones Group, which was attempting to sell off her namesake line, Rachel Roy, as well as her contemporary line, RACHEL Rachel Roy. After winning a preliminary injunction that prevented the sale, it seems Rachel Roy has prevailed over The Jones Group.

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Topson Downs, an apparel and manufacturing company based in Los Angeles, announced Friday that it purchased a majority equity stake in the brand, which included The Jones Group’s 50 percent stake.

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Rachel Roy Wins Preliminary Injunction

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Rachel Roy won a preliminary injunction in her battle to stop The Jones Group from selling the Rachel Roy brand and associated trademarks to Bluestar Alliance for $14.6 million. New York State Supreme Court Justice Jeffrey Oing handed down the injunction on Friday which effectively prevents the continuance of any negotiations of the sale until the lawsuit has been resolved.

Roy sued the production and distribution company that has been acquired by equity firm Sycamore Partners in April of this year, claiming that the sale of the company violates the agreements between Roy and Jones when Jones acquired the brand in 2008.

To be granted a preliminary injunction, the plaintiff must show there is a likelihood of success and irreparable harm. Justice Oing stated, “Irreparable harm is that, you know, when it comes to trademarks, when it comes to designs, it’s very personal in nature.…This is something that she created, it’s her baby in that sense.…And I can’t help but think that [her trademark or] what she has worked hard at to develop would somehow go downscale or may go downscale, and it may go down to lower end, which is not what she envisioned, and that’s why this contract is written the way it’s written.”

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Rachel Roy Sues Jones Group Over Sale of Namesake Line

Rachel_Roy_VF_2012_Shankbone_2Rachel 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.

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