According to the NY Daily News, the hip hop mogul is being sued by Parlux Fragrances for his failure to fulfill his end of a business agreement.
The New York based Perfumania who is well known for their celebrity fragrances teamed up with the rapper in 2013 for the launch of Gold Jay-Z. After its initial success as the best celebrity fragrance in 2014, their sales dramatically declined and they are holding Jay-Z accountable.
Parlux says the licensing agreement entailed the use of Jay-Z’s name, image, as well as social media posts and promotional appearances endorsing the fragrance. They were instead met with his refusal to appear on Good Morning America and Macy’s among other scheduled obligations. To add fuel to the fire, Jay-Z is said to have been a no-show to business meetings that could have potentially sparked the development of follow-up scents.
Contrary to a projected $50 million in revenue, the company’s unsold inventory resulted in a loss of almost $16 million. Jay-Z crippled “the emerging brand…all the while collecting a handsome guaranteed minimum royalty as well as Perfumania common stock,” the suit reportedly says.
Parlux Fragrances is asking for a total of $18 million: $16 million in damages as well as the compensation of $2 million in royalties.