Halston's spectacular rise became a cautionary tale about what happens when a designer's name becomes more valuable to corporations than the designer himself. In 1973, Halston sold his company to Norton Simon, Inc. for a reported $16 million while retaining his position as principal designer and enjoying broad creative control. A decade later, in 1983, he signed a reported six-year, $1 billion licensing agreement with J.C. Penney for Halston III, an affordable line of clothing, accessories, cosmetics, and fragrances priced from approximately $24 to $200. Halston believed the mass-market deal would expand his influence, but luxury retailers regarded it as a betrayal of exclusivity. Bergdorf Goodman dropped Halston Limited soon after the announcement, effectively severing the designer from one of the stores that had helped launch his career.
The corporate fallout was even more devastating. Norton Simon was acquired by Esmark in 1983, after which Halston's label passed through the hands of Playtex International, Beatrice Foods, and other owners. By 1984, Halston was barred from designing for Halston Enterprises and replaced by his former assistant, John David Ridge. Ridge later recalled that Halston's hands shook so badly that he often had to point while Ridge cut the fabric, although flashes of his old brilliance still appeared during late-night draping sessions. Halston unsuccessfully attempted to regain control, and Revlon acquired Halston Enterprises in 1986. After negotiations broke down over Revlon's plan to continue the line without his input, Halston was left with little authority over the brand bearing his name. The clothing division was discontinued in 1990, while the perfume business survived, leaving one of America's most influential designers commercially eclipsed by the corporate machinery he had helped create.
