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What is happening at Rhude?

A lawsuit accuses the founder, Rhuigi Villaseñor, of using company funds inappropriately

What is happening at Rhude?  A lawsuit accuses the founder, Rhuigi Villaseñor, of using company funds inappropriately

Rhude's founder Rhuigi Villaseñor has been sued by his business partner George Robertson on the grounds of misusing the brand's finances to support his own lifestyle. Robertson currently owns 20 per cent of the company and has been investing in the brand since 2016. According to reports in the Los Angeles Times, the lawsuit filed by Robertson indicates that Villaseñor «took advantage of his power and control over the products, designs, bank accounts and financial records of Rhude's companies to enrich himself to Robertson's detriment,» using money intended for Rhude for «private jets, Ferraris and Lamborghinis, a home in the Hollywood Hills, extended stays in Italian villas, and a watch collection that includes several pieces worth over $100,000.»

According to Robertson, the climate of hostility between the two appears to have sprung as early as 2019, as the considerable connections in the music business that provided the investment partner - Robertson is also a record agent, co-wrote LMFAO's song, Sexy And I Know It (2011) - had begun to give rise to no small amount of jealousy on Villaseñor's part. Two years ago, the two parties tried to reach an agreement to resolve the problem, including a $5 million offer from the designer to buy back Robertson's shares, but to no avail. Neither Robertson nor Villaseñor decided to speak to the American press about the lawsuit, but what is known is that the Filipino designer declared annual revenues in excess of $30 million, but only distributed $41,000 per year to Robertson. For this reason, Villaseñor's partner will demand compensation, access to the brand's accounts and the removal of the designer from control over the company. Created in 2015 and beloved by NBA athletes and pop stars such as Jay-Z, Justin Bieber and Lebron James, the Rhude brand has achieved success quickly thanks to garments that brilliantly combine luxury tailoring with designs rooted in an aesthetic linked to the world of hip-hop and streetstyle. Last year the designer was put in charge of the artistic direction of Swiss brand Bally, but only last month his departure was announced, and now Villaseñor is facing a lawsuit that could also be worth his role within Rhude.