Scandal Will Cost Paula Deen Over $10 Million, Says Crisis Manager
By Nicole Goodkind | Daily Ticker – Wed, Jun 26, 2013 12:31 PM EDT
Paula Deen's teary-eyed defense on this morning’s Today Show wraps up a week of controversy that will cost the former Food Network star an estimated $4.5 million, according to Forbes. But the financial toll on Deen's empire will grow.
Wal-Mart just announced today that it is cutting ties with Deen. Dave Tovar, a spokesperson for the company, said Wal-Mart will not place "any new orders beyond what's already committed." Deen has sold a variety of branded products from grocery items to health products at the world's largest retailer since 2011. And Caesar's also announced on Wednesday that Deen's name is being stripped from four buffet restaurants it owns.
“She will never be whole again,” says Howard Bragman, Vice Chairman of Reputation.com and a long-time crisis manager. “You just can’t say it’s a one-time hit of $3 or $4 million dollars, I think it’s much more than that. I think its tens of millions of dollars when you look at it over time.”
In the Today Show interview Matt Lauer asked Deen if she was there “to express what she just said or to stop the financial bleeding.” Deen responded by saying that she was there because she wanted people to know exactly who she was.
Bragman tells The Daily Ticker that the interview was more of a business move, “today’s interview was an attempt to define herself and from a business point of view to stop the bleeding, to stop the attrition of brands.”
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