In an unexpected move Russell Simmons has sold one of his biggest empires, Phat Fashion for $140 million dollars. Selling his company to one of Seventh Avenue’s biggest garment makers, Kellwood Company, the deal includes Phat, Phat Farm and Baby Phat as well as the licensing for the organization. Though Kellwood will now own the company, Russell will continue to run Phat Farm and his wife Kimora Lee Simmons will continue to head Baby Phat.
Last year Phat Fashion snatched $615 million dollars of the fashion market. Kellwood will now have access to a 10 billion dollar market and strengthen its presence in hip-hop brands. Along with the agreement Russell will continue to have long-term incentives through a royalty arrangement. “I’m a much bigger philanthropist today”, Russell said at a press conference last week. A portion of his money will be used to register more voters and education. Russell will also build an endowment that his children may run in the future. “I want them to go to work every day and give away money,” he said.