On July 18, Orange 21 (Spy Optic) amended its licensing agreement with Rose Colored Glasses (Mary J. Blige’s company). The amendment provides “…for an earlier expiration of the Company’s license to sell Mary J. Blige (“MJB”) branded sunglasses (the “License”) on March 31, 2012.” For this, they paid Rose Colored Glasses $1,000,000 at signing and issued a non-interest bearing promissory note for $500,000 that’s due March 31, 2012. The filing only provides about half a page of real information. You can read it here.
My take on Orange 21, as you know if you’ve been reading what I’ve written about them, is that the tough economy and some management issues left them without the sales volume and margins they needed to support their required advertising and promotional programs. To try and address this issue, they took what I thought was the reasonable step of making licensing agreements with O’Neil, Jimmy Buffett’s Margaritaville brand, and Mary J. Blige to produce and market sunglasses under their names.