As Iconix Brand Group, Inc. continues its search for a financial lifeline, the New York-based brand management company is examining a range of strategic alternatives, including a potential sale or merger.
The company, whose owned brand portfolio includes Umbro, Lee Cooper and Ecko Unltd, announced that its management has received authorization from the board to explore options ranging from a possible sale or merger to debt and equity financings.
As it expands its strategic review process, the company will continue to work with financial adviser Ducera Partners, as well as its legal counsel, Dechert. The news comes after Iconix’s announcements that it is selling its Umbro and Starter businesses in China for $62.5 million and $16.0 million, respectively. According to the company, it intends to use the funds raised by these transactions for debt repayment and covering general corporate expenses. Both sales are expected to close by September 15.
As part of its strategic response to the negative impact of the coronavirus pandemic, Iconix has already reduced its headcount and eliminated non-essential operating expenses, measures which the company says will lead to more than $10.0 million in annualized cost savings.
