16 Jul Iconix Brand Group To Explore Sale
Iconix Brand Group, Inc., the parent of Starter, Pony, Umbro, Danskin and a number of other brands, said in a regulatory filing that its board has decided to broaden its exploration of strategic alternatives available to the company to enhance shareholder value, including a potential sale.
Alternatives also include a merger or other business combinations, a recapitalization of its existing capital structure, financings or re-financings of its existing indebtedness, sales of equity and equity-linked securities, dispositions of discrete brands and related assets, licensing or other strategic transactions involving the company, or any combination of the foregoing.
Iconix noted that the exploration is in addition to the company’s previously announced executed definitive agreements to sell the rights to the Umbro and Starter brands in China. In connection with such strategic review, the company retained Ducera Partners LLC as a financial advisor, together with Dechert LLP, its existing legal counsel, to assist in this effort.
Bob Galvin, CEO and board member, said in a statement, “We are confident in the company’s strategy to continue to de-lever its balance sheet and rationalize our cost structure. While we have undertaken a number of actions toward positioning the company to drive growth and preserve operating leverage to achieve sustainable market leadership in the brand management sector, including recent asset sales, after careful consideration, our Board has determined that it is prudent at this time to undertake a broader strategic review in order to ensure that all available alternatives for the company are being evaluated to maximize value for our shareholders. As the Board conducts its review, we remain focused on executing on our strategy and continuing day to day operations as usual.”
Iconix said there can be no assurance that the exploration of strategic alternatives would result in any transaction or specific course of action. The company has not set a timetable for the conclusion of its review of strategic alternatives and does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until its Board of Directors has approved a specific transaction or course of action.
The company’s brands include Mossimo, Ocean Pacific/OP, Danskin, Rampage, Joe Boxer, London Fog, Mudd, Candie’s, Buffalo, Starter, Rocawear, Zoo York, Ecko Unltd, Artful Dodger, Umbro, Lee Cooper, Ed Hardy, Pony. Royal Velvet, Canon, Fieldcrest and Sharper Image.