SEC ORDERS FORMAL INVESTIGATION OF ICONIX BRAND’S ACCOUNTING
Iconix Brand Group, Inc. has received a formal order of investigation from the Securities and Exchange Commission (SEC) related to the accounting treatment for the formation of certain joint ventures. Additionally, the company has formed a special committee of the board of directors to conduct a review of the accounting treatment related to transactions in question.
As announced in a Form 8-K filed on November 5, 2015, the company’s current management team determined, based in part on the special committee’s review, that the company would restate its historical financial statements in respect of the 2013 fiscal year and the fourth quarter thereof, the 2014 fiscal year and each quarterly period thereof and the first and second quarters of 2015, to correct certain errors in accounting. The company completed these restatements, which were filed at the end of November 2015.
Iconix will continue to focus on building its brand management platform across the globe and is currently in active discussions with potential lenders to be in a position to refinance its 2016 convertible notes.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: Badgley Mischka, Joe Boxer, Mudd, Mossimo, London Fog, Rocawear, Starter, Umbro and Marc Ecko.