Looks like Chelsea Houska and Cole DeBoer might be having some financial troubles!
The couple is being sued for $3 million after being accused of breaching a contract with a promotional company. They’re denying the claims, but that doesn’t mean they’re off the hook.
The couple just built a new home, welcomed a fourth child, and decided to quit Teen Mom 2, so they might be a bit tight on cash.
Now, the couple is issuing a statement on the showdown.
According to The Sun, Chelsea’s company C&A Enterprises and The William Gerard Group were sued for breach of contract by Envy last April.
The company claims they entered into a contract in 2015 with The William Gerard Group to consult Chelsea and Cole. In exchange, Envy was to receive a portion of the couple’s promotional revenue.
Chelsea’s father Randy and her three kids were included in the contract as well.
The outlet reports that Envy worked as a “consultant to negotiate appearance, endorsement, licensing, royalty and television agreements and related contracts” from 2015-2019.
The lawsuit claims that Chelsea and Cole failed to pay the money that was due in accordance with their contract. They were required to pay 35% of all fees and royalties for domestic deals and 40% for foreign deals.
According to court papers, the couple “breached their contracts by directing certain Brands to directly pay Houska, DeBoer, one of the other Shared Clients, and/or other persons or entities to avoid paying Envy Licensing Fees.”
Chelsea and Cole also “failed to perform, without any cause or reason, many of their responsibilities to the Brands. This included, but is not limited to Bombay Hair Wand, Carseat Canopy, Daniel Wellington, Diff, Fab Fit Fun, Highway3, Kitsch, Kitsch Hats, Loving Tan, One Memory Lane, Perfekt Beauty, Profile Sanford, Sintillia, Sparkling Organics Sipp, Sugar Bear Hair, Teami Blends, and Timeless Organics.”
As fans know, a lot of Chelsea’s content is promotional content, so $3 million seems fairly reasonable for four years of constant promotional work. Court papers claim Chelsea and Cole made “millions” from these deals.
The couple filed a countersuit, alleging that Envy withheld $150,000 from them. They deny the allegations and claim they “do not owe any payments to Envy.”
“Envy wrongfully withheld payments due to Chelsea,” the countersuit claims. Chelsea also alleges that Envy does not have any deals with her children.
The countersuit also claims that Envy “actually harmed the professional careers of Defendants Chelsea and Cole by withholding considerable payments from them and acting in an unprofessional manner, including but not limited to, arguing with and acting disrespectfully toward Chelsea and Cole, potential and then-existing licensing contacts, and other professional contacts of Chelsea and Cole.”
They said the company “intentionally omitted numerous deals and/or revenues from the Account Statements for the sole purpose of depriving Chelsea, Cole, and TWGG from receiving funds rightfully due and owing to them.”