NEW YORK, March 2, 2016 /PRNewswire/ -- Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the "Company") today announced that it has sold the rights to the Badgley Mischka IP to Titan Industries, Inc. ("Titan") in partnership with the brand's founders, Mark Badgley and James Mischka, and the apparel licensee MJCLK LLC for $16 million in cash.
Iconix acquired the Badgley Mischka IP in 2004, and the Company has decided to sell the brand since the time and resources required to properly support it are not in line with the rest of the Iconix portfolio. Today, Iconix has a portfolio of over 30 brands, and the Company is focused on those brands that generate significant volume through both direct-to-retail relationships and global networks.
Peter Cuneo, Chairman and Interim CEO of Iconix, commented, "As part of the comprehensive review that we have been conducting over the past several months, we have been evaluating each brand in the portfolio and have been identifying where our time and resources are best spent. Badgley Mischka is a strong brand, and we believe it is in good hands with Mark, James, and Titan. However, we felt that it was in the best interest of our Company to divest this non-core asset and allocate our resources to our larger volume, higher margin brands. We expect to continue to evaluate opportunities to further rationalize the portfolio and maximize shareholder value."
While Iconix expects to record a gain related to this sale in the first quarter of 2016, this transaction is not reflected in the Company's current guidance. The Company will provide updated guidance for 2016, when it reports its fourth quarter and full year 2015 financial results.
"We have had a productive 11 years working with the Iconix team to build Badgley Mischka from its red carpet origins to a full lifestyle luxury brand," said Mark Badgley. "We are excited to manage our core product categories in-house and focus on the luxury aspect in both product and image."
"We intend to capitalize on the strength of our women's Couture and RTW collections, and especially the success of the shoe collections, to further this partnership with Titan, a company with tremendous expertise in the luxury market," James Mischka continued. "The core values of Badgley Mischka have always been luxury and timeless glamour; buying the brand back in this partnership will provide the basis to develop these attributes in a modern and exciting manner."
Joe Ouaknine, Co-Founder and Chairman of Titan said, "I am excited to be buying the Badgley Mischka brand. As the long time footwear licensee, I have always had a special affinity for the brand, as well as Mark and James as the eponymous designers. Thus, I am thrilled to be partnering with the founders, Mark and James, and allowing them to regain ownership in their namesake brand."
Titan, founded in 1998 by Joe Ouaknine, has become a powerhouse in women's fashion footwear. Presently with an emphasis on high fashion footwear made from an array of fun yet sophisticated materials, Titan has created "artistic" and unique footwear branding their licensors with quality and style. Titan currently holds the footwear licensing for Badgley Mischka, Charles Jourdan, LAMB by Gwen Stefani, Joe's Jeans and Daya by Zendaya.
MJCLK was founded in 2008 by Mark Badgley, James Mischka, Christine Currence, Lara Piropato, and Kimberly Lee-Siu to be the apparel licensee for the Badgley Mischka brand. The company is responsible for the design, manufacturing, and distribution of Badgley Mischka Couture, Badgley Mischka Collection, and Belle Badgley Mischka worldwide.
About Iconix Brand Group, Inc.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: CANDIE'S (R), BONGO (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), SHARPER IMAGE (R), UMBRO (R), LEE COOPER (R), ECKO UNLTD. (R), MARC ECKO (R), ARTFUL DODGER and STRAWBERRY SHORTCAKE (R). In addition, Iconix owns interests in the MATERIAL GIRL (R), PEANUTS (R), ED HARDY (R), TRUTH OR DARE (R), MODERN AMUSEMENT (R), BUFFALO (R), NICK GRAHAM (R) and PONY (R) brands. The Company licenses its brands to a network of leading retailers and manufacturers that touch every major segment of retail distribution from the luxury market to the mass market in both the U.S. and worldwide. Through its in-house business development, merchandising, advertising and public relations departments, Iconix manages its brands to drive greater consumer awareness and equity.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements include, among others, statements relating to additional information that may require the Company to restate further the financial statements and other financial data in the periods impacted by the restatement and/or additional historical periods. These statements are based on the Company's beliefs and assumptions, which in turn are based on currently available information. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Many of these factors are beyond the Company's ability to control or predict and you should be aware that the occurrence of certain events, including those referenced in the sections titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, the Company's subsequent Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission, could harm the Company's business, prospects, results of operations, liquidity and financial condition and cause its stock price to decline significantly. Except as required by applicable law, the Company is under no obligation to update or revise publicly any forward-looking statements.
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