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InTouch is reporting that Simpson and Owens were spotted around Hollywood shopping and "holding hands." Owens is the former frontman of the Chiodis, but more recently is in a new band called D.R.U.G.S., who just released their first album on Decaydance -- Pete Wentz label. And as you can imagine, Pete's not too happy about it.
"Pete did a lot for this guy," a source told Us Magazine. "Craig was in another band and got kicked out. Pete found Craig, built a band around him and signed him. He's shocked at how this guy is repaying him."
As if affectionately hanging out with your soon-to-be ex-husband's friend isn't bad enough, the timing couldn't be worse for Simpson and Wentz. The former couple just started hearings for the custody rights to their son Bronx Mowgli. But people in Simpson's camp are claiming the two are merely friends.
"Ashlee and Craig are longtime friends. They have spent some time together, and he is comforting her throughout this difficult time."
Regardless of their intentions, we can't see this playing out well. Do you think Ashlee Simpson and Craig Owens are just friends? Is this too soon for her to be moving on? Would you kick D.R.U.G.S. off your label if you were Pete?
Watch Ashlee Simpson's 'Outta My Head' video.