Rachel Roy is suing her parent company, Jones Apparel Group, for trying to sell her business to Bluestar Alliance for $14.6 million without her consent.
Roy’s contract with the company specifically states that the designer maintained creative control over her designs as well as approval rights for the use of trademarks. She would have to sign off on any sale, her lawyers allege. The complaint continues, “Jones had no intention of actually partnering with Ms. Roy, but instead entered into these agreements under false pretenses, and now wrongfully seeks to take exclusive control of Ms. Roy’s brand and the trademarks.”
Jones will continue to sell the lower-priced line, Rachel Rachel Roy, at Macy’s, but Roy is seeking to undo the contract with Jones dating back to 2008 on top of damages for lost profits and lost opportunities.