BLANC & ECLARE, a fashion brand founded in 2014 by Korean-American singer and actress Jessica Jung – formerly of K-pop girl group Girls’ Generation – is currently embroiled in a lawsuit for defaulting on a loan.
On September 28, Tyler Kwon, who is the CEO of Jessica’s agency and her boyfriend, clarified the news reports by several Hong Kong media outlets that BLANC & ECLARE has been sued by Joy King Enterprises over an unpaid debt of $6.5 million.
Tyler Kwon explained that the situation was “unfair” and that it had arisen due to the loan being transferred to a new creditor. He added, “The situation is one that can be readily resolved. This is not Jessica’s personal debt, but a loan made to BLANC & ECLARE.” Referring to misleading reports that suggested the loan had been made to Jessica as an individual, he added, “Her character has been defamed.”
According to Tyler Kwon, BLANC & ECLARE had borrowed $4 million from Spectra SPC, and Spectra SPC later transferred that loan to Joy King Enterprises back in August. Within one month of the transfer, Joy King Enterprises suddenly demanded that BLANC & ECLARE pay back the sum of $6.5 million, which included the interest, within two weeks.
Kwon stated, “After we first received the loan from Spectra SPC in 2016, we paid off the loan diligently for about three years. In 2020, due to COVID-19, we came to an agreement with Spectra SPC to extend the time period of the loan past what we had initially agreed with.”
“However, in August, the loan was transferred to Joy King Enterprises and without our knowledge that the loan had been transferred. Joy King Enterprises suddenly contacted us to repay the loan within two weeks.”
Tyler Kwon said that he had explained that BLANC & ECLARE had reached an agreement with Spectra SPC to extend the time period of the loan, but Joy King Enterprises kept insisting on getting back the sum on the two-week deadline. This ultimately led to BLANC & ECLARE being sued.
“Since September includes the public holiday, Chuseok, we said that if they gave us more time, we would be able to resolve the entire matter. But they insisted that we repay everything in two weeks,” said Kwon. “Considering the scale of our company, it’s a loan that can easily be repaid, but the entire loan plus interest in just two weeks, right after the transfer of the loan, was too much.”
BLANC & ECLARE merchandise is sold in around sixty stores in Seoul, New York, Beijing, Hong Kong, Bangkok, Taiwan, Shanghai, Tokyo, and Vancouver, after opening its first flagship store in SoHo, New York.
So far, Jessica Jung has not commented regarding the issue.
-J.Chung.
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