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Pearl-inspired blazer business falls apart
Wade Payne/Associated Press
University of Tennessee men's basketball coach Bruce Pearl yells to his team during a game in February 2006. Susan Brooks, a South Knoxville native who owns The Image, teamed up with Franklin, Tenn., physician Paul Thomas to develop and sell an orange blazer like the one worn by Pearl. Now the two partners are suing each other.
Susan Brooks, a Knoxville clothing store owner, discusses a legal case with her lawyer Darren Berg at his office recently. Brooks started a clothing company called Real Original Colors with Paul Thomas of Franklin, Tenn. Brooks has since been dismissed from the company and she and Thomas are suing each other.
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To Susan Brooks, business is about giving your word.
"It's the old-fashioned way. That's pretty much how I've always thought about it. You do what you tell someone you'll do," said Brooks, a South Knoxville native who worked in the golf apparel industry in sales and design for eight years before starting her own company, The Image.
It's been, Brooks admits, a hard lesson learned while trying to help a Franklin, Tenn., doctor realize his dream of developing and selling an orange blazer - as worn by University of Tennessee men's basketball coach Bruce Pearl.
Brooks and former business partner, orthopedic surgeon Paul Thomas, started Real Original Colors, or R.O.C., in March 2007 to sell a complete collection of upscale collegiate apparel that Brooks created and was debuted at the Vols football home opener last fall against Southern Miss on Sept. 8.
While the clothes - orange and navy blazers, orange and white striped seersucker suits, sundresses, capri pants - were a hit with Vol fans, the relationship between Brooks and Thomas soon soured.
The pair are in the midst of a legal battle.
Brooks, who says she was never paid for her work and subsequently pushed out of the company, is suing Thomas for breach of contract and defamation. Thomas has countersued for more than $4 million alleging Brooks failed to meet certain financial obligations, interfered with a prospective business relationship at Auburn University and spoke negatively about R.O.C. He is seeking an injunction to prevent Brooks from competing against him.
A preliminary hearing is set for Monday in Williamson County Chancery Court in Franklin.
Creating the line
Brooks was introduced to Thomas in the fall of 2006 through Greg Hulen with the Volunteer Athletic Scholarship Fund, the fund-raising arm of the University of Tennessee Athletic Department, according to court documents.
Thomas, a UT alumnus and booster, was excited about the possibility of replicating Pearl's orange blazer and turned to Brooks, a small businesswoman with years of textile experience, for help.
"We met. I liked the gentleman right off," Brooks said in an interview this week.
Brooks, who determined selling just a blazer wasn't feasible, laid out a plan to create an entire collection of nice Tennessee-licensed apparel. Brooks said she knew it had "tremendous opportunity" because of previous meetings she had with Tennessee women's athletic director Joan Cronan, who wanted Brooks to develop a line of fashionable women's apparel for her boosters and donors because Cronan felt there were "too few options for the mature female."
Brooks offered to develop the line through her company but she said Thomas insisted on forming a joint venture, which eventually became the R.O.C.
"He said he didn't want to do this and make a lot of money without sharing it with me. He seemed sincere enough," Brooks said.
As for financing, Brooks said Thomas indicated it wouldn't be a problem because he served on the board of directors at Tennessee Commerce Bank in Franklin.
"He said, 'I'm on a board at the bank and money won't be a problem. We can get whatever we need. I can handle the finances, you do what you do best.' I said, 'OK. Done deal,' " Brooks said.
The pair opened a joint line of credit for $750,000 at Tennessee Commerce Bank, though Brooks had told Thomas $1 million was needed. When she questioned him about it, Brooks said Thomas indicated "we can up it any time we need to."
Brooks and Matt Bailey, sales and marketing director for The Image, traveled the U.S. and abroad working on the clothing line and racking up expenses paid for personally or through The Image after Thomas assured her she would be reimbursed, Brooks said. Thomas initially called her three days a week and eventually every night to get what she said he called his "R.O.C. fix."
"That's what he called it. He was so excited about it," she said.
The product line hit UT Bookstore in time for last year's first home football game, but within weeks Brooks and Thomas were in disagreement over the direction and management of R.O.C.
Brooks said she was subsequently told she was "relieved of her duties."
"It was almost like it was planned perfectly," Brooks said. "You can't do this to people. It's just not right. It's just wrong."
Significant concerns
Thomas' attorney Douglas Hale declined to discuss the case because of the pending litigation. Hale, instead, pointed to the court pleadings, which he said clearly outlines his client's "concerns and assertions" and desire to have the business "be conducted in proper fashion."
"It is unfortunately a contest between the members regarding certain actions that went on in the LLC that Dr. Thomas, as controlling member, objected to," Hale said. "We submit that significant concerns arose in the LLC, that these standards of performance were not being met."
Thomas is alleging that Brooks "failed to provide her additional capital contributions and is in default of both calls for funds." The additional capital, Thomas said in court documents, was necessary "to complete merchandise orders and deliver its finished apparel merchandise to market."
The company, he said, had "fully drawn on its business line of credit and had insufficient funds to meet its short-term and current liabilities."
Brooks' attorney Darren Berg said under the operating agreement, Thomas does not have the authority to issue a capital call without Brooks' consent. Furthermore, Thomas paid himself $300,000 for a personal loan to R.O.C. from the $750,000 line of credit but Brooks was not reimbursed at all, Berg said.
According to court documents filed by Thomas' attorney, the loan documents with the company's lender prohibit other loans without its consent, adding "it has not consented to loans."
"In any event, Brooks and Mr. Bailey have failed to provide sufficient documentation evidencing such expenses despite repeated requests," the court documents state.
Thomas also maintains that Brooks later interfered with the company's relationship with the Collegiate Licensing Co. and Auburn University, one of several schools where R.O.C. had applied for a licensing agreement.
Brooks denies trying to compete with Thomas adding that she was unaware of R.O.C.'s efforts to grow because Thomas had told her the company wasn't going to be expanded because it was out of money. She did learn, however, that Bailey, a former Image employee who helped create the line for R.O.C., had subsequently planned without her knowledge to start a business to market high-end apparel to schools other than UT.
"I've had several people say just walk away and give it to him. How can you walk away from something you put your heart and soul into and let him have it for nothing?" said Brooks, whose 13 acres in South Knoxville are tied up in the loan as collateral.
"The stubborn side of me says 'I'm not giving it to you.' If I have to work at McDonalds, flip hamburgers and collect Coke cans, I will not give up. If I lose everything I own, it's what I believe in, and it's not right."
Brooks and her attorney say they have made several attempts to settle the suit but to no avail.
"We would love to settle the case," Berg said. "My client has been extremely stressed about this. We've made countless overtures in that regard and they're answer has consistently been no."
Thomas is seeking a court order to have Brooks quit working in the collegiate apparel business. Berg said the order is broad enough to shut down her existing company, The Image, which, he noted, was engaged in the business of collegiate apparel prior to R.O.C.
"It's just overwhelming to believe that these people are doing this," said Brooks, a single mother of two. "At the end of the day he gets to operate, he gets to be a doctor, he gets to do all these things that he ethically took an oath to do, but he doesn't want me to work, he doesn't want me to make money and he wants to stop me from doing what I've done my whole life."
Business writer Carly Harrington may be reached at 865-342-6317.
© 2008, Knoxville News Sentinel Co.
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Posted by FatherVol on April 17, 2008 at 12:30 a.m. (Suggest removal)
And this is on a sports page why?
Posted by nicksjuzunk on April 17, 2008 at 12:41 a.m. (Suggest removal)
I love Bruce's blazer... on Bruce. If you try to take it to the masses... well, you kinda go outta business.
Posted by FishTacos on April 17, 2008 at 12:57 a.m. (Suggest removal)
And what is wrong with working at McDonalds??
Posted by powert on April 17, 2008 at 7:30 a.m. (Suggest removal)
I agree the blazer looks good on Bruce, and that is where it should stay...not a good look on most fans.
Posted by eastknoxfan on April 17, 2008 at 8:01 a.m. (Suggest removal)
Typical kns writing and editing. Third to last paragraph-- "they're answer" they are answer?? Come on KNS, use proper grammar!!!!!!!!! It should be "their answer"
Posted by Sheepscape on April 17, 2008 at 8:18 a.m. (Suggest removal)
Slow news day in Vol land.
Posted by lempga on April 17, 2008 at 8:19 a.m. (Suggest removal)
I agree! "WHY IS THIS ON THE SPORTS PAGE?" Donkey Adams is at it again. Garbage!
Posted by BillVol on April 17, 2008 at 8:20 a.m. (Suggest removal)
This was a bad idea in the first place. That is the reason they are having trouble with their business relationship. When I first heard that they were going to start a business to sell orange blazers, I couldn't believe it. You aren't going to sell that many of those even to UT fans.
Posted by pdhuff on April 17, 2008 at 8:24 a.m. (Suggest removal)
I see nothing wrong with Dupree resplendant in a orange blazer hustling carts or pushing the blue-lite special around K-Mart. Looks better than TDTN's old t-shirts on him.
Posted by HotlantaVol on April 17, 2008 at 8:32 a.m. (Suggest removal)
And the truth shall set you free . . . as long as you are rich and can afford a great lawyer.
Posted by HotlantaVol on April 17, 2008 at 8:37 a.m. (Suggest removal)
This just in: The orange blazer is now also available at your local Bass Pro Shop in the hunting section. This announcement comes just minutes after the announcement that the orange blazer has been adopted as the clothing of choice by the Tennessee Department of Corrections for inmates on roadside trash pickup detail. And now, back to you, Dupree.
Posted by TurboFan on April 17, 2008 at 8:38 a.m. (Suggest removal)
Nothing wrong with working at McDonald's as long as you like minimum wage.
There was more than an orange blazer in the line and more than UT apparel in the offing.
Interesting article for the GoVolsXtraLife section or maybe the GoVolsXtraBusiness section.
Posted by drwfocus on April 17, 2008 at 8:48 a.m. (Suggest removal)
Dern - who ever said the doldrums have set in nailed it. BTW are the doldrums what the Ancient Mariner had to endure?
Posted by superk on April 17, 2008 at 9:01 a.m. (Suggest removal)
He should spank that fanny.
Posted by Basketball_Jones on April 17, 2008 at 9:04 a.m. (Suggest removal)
Evolution thats the dumbest comment I have ever heard!!! I feel bad for this woman but you know what that's the way people are now. I'm only 36 but I have known enough people in my life to remember when a person gave their word it actually meant something. Now days so many people in this world are so eager to make a dollar they will screw over anyone they can to do so. I feel sorry for this woman for having put trust in her former partner. Now days people want their cake and eat it to, to bad they're not more genuine people in this world
Posted by richvol on April 17, 2008 at 9:11 a.m. (Suggest removal)
Where is King Solomon when you need him?
Posted by MOOREVOLS on April 17, 2008 at 9:32 a.m. (Suggest removal)
In the actual paper this article is in the business section.
Posted by wewhite on April 17, 2008 at 9:42 a.m. (Suggest removal)
Look, a smile and a handshake will secure a contract for, say, $10. When you're talking about $750 large, probably want to bring a lawyer or two in. Yes, we'd all like to believe that every single person is honest, fair, and hard working. What we need to keep in mind is that people are also, to varying degrees, greedy SOBs. Get things in writing, for heaven's sake! A fool and his (or her) money are soon parted.
Posted by jglocsawgrass on April 17, 2008 at 9:50 a.m. (Suggest removal)
Are you kidding me? This is news?
Posted by mparker on April 17, 2008 at 9:55 a.m. (Suggest removal)
what the hell is this associating CBP's name with this legal garbage???
Posted by bigorangedude on April 17, 2008 at 9:58 a.m. (Suggest removal)
Dang, does this mean I can't order an orange blazer now?
Posted by mparker on April 17, 2008 at 10 a.m. (Suggest removal)
Ashley:
completely arrogant and stupid comment on your part.
I blamed Bruce for last year with OSU, he didn't coach well the second half. This year his team got dominated by a more physically-gifted team. Nothing to be ashamed of in that. It happens.
You might wish to ease off cbp's back a bit, he's done pretty well in his 3 years here. Or, is that not enough for you???
Posted by Sheepscape on April 17, 2008 at 10:24 a.m. (Suggest removal)
After reading more of the article it seems like there was more to it than just ill-thought ideas about orange blazers. Apart from flooding the market with them what would ultimately be self-defeating, this lady and Joan Cronan thought that capri pants and 'mature female vol fan' attire would be enough to float this enterprise?
Posted by superk on April 17, 2008 at 10:42 a.m. (Suggest removal)
This was a dumb idea from the get go. I wonder if they were going to market the same blazer for the section of lady vol fans that sit around the lower mid court area of lady vol games?
Posted by 98reax on April 17, 2008 at 10:57 a.m. (Suggest removal)
Is this what it's like here in the off season? Couldn't we do a WNBA fantasy team instead? I got next. Candace Parker. Your turn.
Posted by superk on April 17, 2008 at 11:27 a.m. (Suggest removal)
The WNBA......now there is a bona fide business.
Posted by DoWhatNow on April 17, 2008 at 11:32 a.m. (Suggest removal)
Dear lord, and people wonder why UT seems so out of touch with the biggest part of its fanbase...
I guess with 1,248 Associate ADs (well, you'll have to double that when you count the Women's Athletic Dept.) they've got nothing better to do than hook up people for a line of "upscale collegiate apparel".
I'm over it. Its unbelieveable some of the stuff that comes out of the Ath. Depts. over there. Between crap like this and the student ticket debacle (making them pay is one thing, but putting out a statement saying its because of COACHES SALARIES is beyond stupid) its not worth the hassle.
Excuse me while i go bang my head against the wall...
Posted by feathersax on April 17, 2008 at 11:32 a.m. (Suggest removal)
Maybe this is the REAL story behind Saturday's Orange & White game. Ya think? Now where'd we hide those orange cleats?
C'mon, KNS...this is pretty lame journalism.
GO VOLS!
Posted by Sheepscape on April 17, 2008 at 11:53 a.m. (Suggest removal)
"I guess with 1,248 Associate ADs (well, you'll have to double that when you count the Women's Athletic Dept.) they've got nothing better to do than hook up people for a line of "upscale collegiate apparel".
Very well said.
Posted by THE_VOL on April 17, 2008 at 11:57 a.m. (Suggest removal)
DoWhat - what the hell are you talking about??? This has absolutely NOTHING to do with the athletic dept! As for the student tickets, that wouldn't have been necessary if the resident moron FOOLmer would agree to reduce his salary to match his achievement AND Summitt wasn't being paid a million for a program that shows zero profit. You, my friend, appear to be dumber than the idiot superk!
Posted by Sheepscape on April 17, 2008 at 12:10 p.m. (Suggest removal)
THE_VOL
The article mentions Joan Cronan by name...so it does have to do with the athletic department.
Posted by bricker865 on April 17, 2008 at 12:24 p.m. (Suggest removal)
I wear the orange blazer. It picks up chicks. Honest, you should try it some time :p
Posted by DoWhatNow on April 17, 2008 at 12:33 p.m. (Suggest removal)
Calm down man. This is what I'm talking about:
"Brooks was introduced to Thomas in the fall of 2006 through Greg Hulen with the Volunteer Athletic Scholarship Fund, the fund-raising arm of the University of Tennessee Athletic Department, according to court documents."
The UTAD had their hands in this thing. UT seems intent on catering to an "upscale" crowd while turning on the fanbase that actually drives the program (see also: club level seating, loge seats, Riverview Club, and on and on...)
As for the student ticket thing, I'm mainly talking about the decision to list salaries as one of the reasons for the increase. The students wouldn't be happy with any increase, but putting something like that in the university's statement is just going to make a bad situation worse. How somebody didn't realize that is beyond me.
I mentioned the inordiante number of associate ADs mainly to make light of the coaches' salaries. They claim coaching money and travel expenses are causing budget problems, while there is a crazy amount of duplicate and, in many cases, unnecessary jobs soaking up cash over there.
Posted by alfrizzle097 on April 17, 2008 at 1:32 p.m. (Suggest removal)
Don't worry, we'll get that and more before Pearl is gone.
Posted by drone on April 17, 2008 at 1:58 p.m. (Suggest removal)
I still have my Big Orange Jump Suit purchased @ Big Don's Elegant Junk in 1976 for $5.00.
Posted by eaglentn2002 on April 17, 2008 at 4:08 p.m. (Suggest removal)
Excellent article!!! I can now go on with the rest of my day! I just needed a great "SPORTS" article like this to keep me going! Give me a break KNS!!!!!!!!!
Posted by spam247buster on April 17, 2008 at 4:22 p.m. (Suggest removal)
My grandfather wore an orange blazer to games before Ray Mears coached at UT.
Posted by pdhuff on April 17, 2008 at 5:28 p.m. (Suggest removal)
My neighbor has about 250 goats we could paint orange on Sept 1st. Be he#l trying to get that off if we stink it up at UCLA, though. I'd hear about that for a long time around here.
I've bought 8-10 different shades of orange over the years, Home Depot can mix the right stuff. One den wall of mine in Ga had the color exact. Sold the place to a Dawg fan. Believe he had a gallon of red paint at the closing.
Posted by VolnDothan on April 17, 2008 at 5:49 p.m. (Suggest removal)
um-k.
Posted by VolnDothan on April 17, 2008 at 5:51 p.m. (Suggest removal)
Doing business deals with doctors. Bad idea.
Posted by hmhawk on April 17, 2008 at 7:11 p.m. (Suggest removal)
Going down State Street awhile back I saw some Vol fashions in the window of a clothing store.Seriously there was a mini-skirt on a mannequin with little footballs with VOLS on them.I would love to see a comely lass in such attire.Probably bring on a coronary but well worth it.
Posted by ncvol17 on April 17, 2008 at 7:32 p.m. (Suggest removal)
Big Don's Elegant Junk ! That brings back memories... You had to measure the khakis with a yardstick to get the waist size.That was when Knoxville had style. No bland franchise restaurants ( instead Smokey Mtn Markets) or up scale niche stores ( instead Big Don's)
Posted by hmhawk on April 17, 2008 at 8:24 p.m. (Suggest removal)
Mcbrim,so glad you are keeping up with all things Volunteer.You got the fever now feed it.Also I saw the UT based clothes in the window of Wiliam King's Clothier.Gotta go by after work tomorrow to make sure.Hope they're still there.
Posted by mparker on April 18, 2008 at 1:53 p.m. (Suggest removal)
"Posted by Ashley on April 17, 2008 at 4:52 p.m. (Suggest removal)
I used to have an orange cat but some folks said it was yellow
"
Okay, now THAt was freaking funny!!!
Posted by mparker on April 18, 2008 at 1:56 p.m. (Suggest removal)
used to drink beer at a place called the last lap, and play pacman.
orange used to be the color I'd sse after a couple of pitchers of beer and 10 quarters...the whole damn board, every one of the little ghosts, and DANG, the girls looked good after all that...
Posted by Laydbakvol on April 18, 2008 at 5:43 p.m. (Suggest removal)
Leave Carly Alone!
Posted by murrayvol on April 18, 2008 at 10:28 p.m. (Suggest removal)
We are a nation of laws, lawyers, lawgivers, and the lawless. Too many I suspect.
Posted by hiresanders on April 19, 2008 at 12:05 a.m. (Suggest removal)
That crap should only be worn on Halloween anyways
Posted by camoman270 on April 19, 2008 at 7:12 p.m. (Suggest removal)
Hang in there Lady, Anyone with any gumption can see he just reamed her and ran with her money and is a full fledged crook!.....As for working at Mcky D's.......the reference was that you dont get rich.????????????duh!!!!!!!!! Doesnt any one reading the column get it?
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