Iconix Brand Group is opening itself up to a possible sale.
The New York-based brand management house, parent to brands such as Zoo York, Pony, Starter, Umbro, and Joe Boxer, informed the Securities and Exchange Commission on Monday that it is considering a potential sale of the company or a merger. In a bid to shore up cash, the company had already reached agreements to sell off the Umbro China and Starter China businesses deals worth $62.5 million and $16 million, respectively.
Iconix is also exploring other strategic alternatives including recapitalization of its existing capital structure, refinancing or a stock share. To timeline has been disclosed.
“We are confident in the company’s strategy to continue to de-lever its balance sheet and rationalize our cost structure,” said CEO and board member Bob Galvin in a statement. “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.”