Kimora Lee Simmons is revisiting the financial details of the 2004 sale of Baby Phat, revealing that her personal earnings from the deal were significantly lower than widely assumed.
The Baby Phat Story
Speaking last week on the “Aspire with Emma Grede” podcast, Simmons said the outcome did not match the perception created by the nine-figure valuation attached to the transaction.
“You live and you learn,” she said, reflecting on the deal.
Her comment cut through years of speculation about the sale of Phat Fashions, the parent company that housed both Phat Farm and Baby Phat.
At the time, the brand was one of the most visible names in urban fashion, with strong retail presence and celebrity influence driving demand. The acquisition by The Kellwood Company was valued at roughly $140 million in cash, according to the New York Times, placing the business squarely among major cultural brands transitioning to corporate ownership. But the distribution of proceeds revealed the realities of ownership structure and decision-making authority.
Lee Simmons has explained that she personally received less than 15 percent from the sale, even though the company itself commanded a much higher valuation.
“You live and you learn, I probably made — I think we ended up selling … it for 100-and-something million dollars. I probably got $20 million of that, or less. And the entire sale was based on Baby Phat,” Simmons explained.
The groundwork for the company was established by Russell Simmons, who founded Phat Farm in 1992 and built the business relationships that made the expansion into women’s fashion possible.
Russell tells the story differently. In an answer to Kimora’s complaint about her small slice of th Baby Phat pie.
“I gave her the brand, which already existed, I put her in Baby Phat leather shorts the day we met… I found designers I made her famous and marketed the brand with her face. Eventually she learned and blossomed. She did a good job BUT NOTE… very generous of me,” Russell Simmons said, AllHipHop reported.
The statement frames Baby Phat as something he built and handed over, positioning himself as the architect behind both the brand and Kimora’s early visibility.
Baby Phat launched in 1999 as a women’s extension of Phat Farm, but went on to develop its own identity. Within just two years, Baby Phat was generating $30 million in revenue, reaching a milestone that took Phat Farm six years to achieve.
Kimora Lee Simmons served as creative director and later president and CEO. She became the face and driving force behind the brand’s expansion.
When Russell Simmons sold Phat Farm and Baby Phat to Kellwood Company, the combined deal was worth $140 million.
Simmons remained in a leadership role after the acquisition to maintain continuity and oversee brand direction, while Kimora Lee Simmons continued as creative executive responsible for public image and product development.
An additional agreement in 2011 contained language that settled how the “Baby Phat” and “Phat Farm” marks would be used separately by different owners to avoid consumer confusion between the former couple.
Lee Simmons’ net worth is estimated at about $20 million, reflecting income from fashion, television, and licensing ventures.
Celebrity Net Work now tabs Simmons’ estimated net worth at roughly $10 million, shaped by later financial pressures and market shifts. Neither figure mirrors the scale of the original transaction — a reminder that large exits do not guarantee lasting wealth.
Much of the diminishing of their net worth is connected to their personal relationships in the past and their investment as partners in Celisius Holding. The Celsius stock battle severely threatens their networks. Simmons claims his 49 percent share (now worth over $500M) was illegally used for a criminal bond. If the government successfully forfeits these shares, both pioneers lose their most valuable asset, potentially leaving their personal estates without this massive asset stake.
The pair is still fighting the forfeiture in court.
