Diddy to Outsource Sean John Manufacturing

According to a report in this morning's New York Post, Diddy will soon begin outsourcing the manufacturing of his Sean John clothing line. The move comes after the savvy entrepreneur inked a major exclusive distribution deal with Macy's this past spring.

Sean John representatives confirmed the deal late yesterday (June 8), explaining that the contracting of overseas manufacturers would now be handled by LF USA, a unit of Li & Fung, an export trading company with headquarters in Hong Kong. One industry insider referred to the business move as "a next step in expensive reduction as they [Sean John] struggle to remain in the black," adding that: "Puffy has not been spending any time in the business. The only category doing well is fragrance."

Diddy has been notably silent about Sean John other than the Macy's announcement. If one can track what businesses are healthy based on Puff's marketing volume, it's safe to assume that music, acting and Ciroc are his biggest focal points at the moment. Either way, a Sean John spokesman took issue with the Post's source claiming that the company was struggling to stay profitable. "The design group is not being outsourced. The promotion is not being outsourced and the production is not being outsourced," they alleged.