Bethenny Frankel’s $120 Million Lie!
Bethenny Frankel, the multi-hyphenate who turned reality TV fame into a business empire, may not have confirmed the rumors that the sale of her Skinnygirl drink franchise for $120 million, but she certainly never denied them. It turns out there’s a good reason that Frankel has carefully avoided talking about the real number – it seems to be MUCH lower.
A U.S. Securities and Exchange Commission quarterly report form has been uncovered that shows that Fortune Brands, Inc, which acquired Skinnygirl, bought the business for $8.1 million.
“In March 2011, we acquired the Skinnygirl ready-to-drink cocktail business,” the company’s website states. “The acquisition included inventory and identifiable intangible assets. In addition to goodwill, we recorded contingent consideration, which is based on the achievement of certain sales targets. In future periods, the Company may be required to record contingent consideration in an amount not in excess of approximately $25 million. Any change in the Company’s estimated liabilities for contingent consideration will impact operating income in future periods.”
In short, even if the ready-made diet cocktails are a runaway success, Frankel won’t clear anything even resembling $120 million.