Iconix Brand Group

{{Distinguish|Iconix Entertainment|Iconix (disambiguation){{!}}Iconix}}

{{Infobox company

| name = Iconix Brand Group, Inc.

| logo = Iconix logo.svg

| logo_size =

| type = Private

| traded_as = {{NASDAQ was|ICON}}

| industry = Textile, footwear

| fate =

| predecessor =

| successor =

| foundation = {{Start date and age|1978}}

| founder = Neil Cole

| location = {{nowrap|New York City, New York, U.S.}}

| area_served = Worldwide

| key_people = {{ubl|Peter Cuneo (executive chairman)|Robert C. Galvin (president & CEO)}}

| products = Clothing, athletic shoes

| production =

| services =

| revenue = {{US$|link=yes}}400 million FY 2011

| profit = {{profit}} {{US$}}80M FY 2011

| num_employees = 120

| owner = Lancer Capital, LLC

| subsid = {{collapsible list|

}}

| homepage = {{URL|https://www.iconixbrand.com}}

| footnotes = [https://web.archive.org/web/20121120093807/http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=ICON Iconix Brand Group Inc.] at Bloomberg Businessweek{{cite web|url=https://www.sec.gov/Archives/edgar/data/857737/000156459021017054/0001564590-21-017054.txt|title=FORM 10-K}}

}}

Iconix Brand Group, Inc. is an American brand management company that licenses brands to retailers and manufacturers, primarily in the apparel, footwear and apparel accessory industries.

History and operations

The company began as Candie's, Inc., whose brand it purchased in 1993. The Bongo brand was bought in 1998, then the Badgley Mischka brand was purchased in 2004. The Joe Boxer and Rampage brands were acquired on July 22, 2005, and September 15, 2005, respectively. In 2006, the company acquired the Mudd, London Fog, Mossimo, and Ocean Pacific brands on April 11, August 29, November 1, and November 6, respectively. The company continued with acquisitions in 2007 with the purchase of Cannon, Danskin, Artful Dodger, and Rocawear brands.

On November 15, 2007, Iconix bought the Starter brand from Nike.

On October 27, 2009, Iconix paid $109 million for a 51% stake in urban fashion brand Eckō Unltd. It acquired full ownership in May 2013.{{cite web|url=http://phx.corporate-ir.net/phoenix.zhtml?c=62075&p=irol-newsArticle&ID=1824133&highlight=|archive-url=https://archive.today/20130811100657/http://phx.corporate-ir.net/phoenix.zhtml?c=62075&p=irol-newsArticle&ID=1824133&highlight=|url-status=dead|archive-date=August 11, 2013|title=iconix brand group, inc. - Investor Relations - Press Release|access-date=November 21, 2016}}

On June 3, 2010, Iconix and Charles M. Schulz Creative Associates jointly acquired all assets related to the Peanuts comic strip from its longtime owner, United Media, using the property to form a new company, Peanuts Worldwide, which is 80% owned by Iconix and 20% owned by Schulz Associates. Peanuts Worldwide also acquired United Media's licensing arm, which represents licensing for its other properties including Dilbert and Nancy.{{cite press release|url=http://www.prnewswire.com/news-releases/iconix-brand-group-closes-acquisition-of-peanuts-95534994.html|title=Iconix Brand Group Closes Acquisition of Peanuts|access-date=November 21, 2016}}{{cite news |url=http://www.licensemag.com/licensemag/Entertainment/Iconix-Forms-Peanuts-Worldwide/ArticleStandard/Article/detail/672956 |title=Iconix Forms Peanuts Worldwide |work=License! |publisher=UBM |date=June 7, 2010 |access-date=November 21, 2016 |archive-date=March 4, 2012 |archive-url=https://web.archive.org/web/20120304050742/http://www.licensemag.com/licensemag/Entertainment/Iconix-Forms-Peanuts-Worldwide/ArticleStandard/Article/detail/672956 |url-status=dead }}

In 2011, Iconix acquired electronics brand The Sharper Image.{{cite web|url=http://www.hometextilestoday.com/article/544693-Iconix_acquires_The_Sharper_Image_brand.php|title=Iconix acquires The Sharper Image brand - Home Textiles Today|access-date=November 21, 2016}} In October 2012, Nike Inc. announced that it had signed with Iconix Brand Group to sell the English brand Umbro for US$225 million.[https://www.bloomberg.com/news/2012-10-24/iconix-brand-buys-nike-s-umbro-soccer-unit-for-225-million-1-.html "Iconix Brand Buys Nike’s Umbro Soccer Unit for $225 Million" at Bloomberg.com], October 24, 2012 The acquisition was completed in December 2012.[http://www.fashinvest.com/iconix-brand-group-completes-acquisition-umbro-nike-225-million/ "Iconix Brand Group Completes Acquisition of Umbro from Nike for $225 Million", Fashion Invest website] {{Webarchive|url=https://web.archive.org/web/20130129115241/http://www.fashinvest.com/iconix-brand-group-completes-acquisition-umbro-nike-225-million/ |date=January 29, 2013 }}, December 4, 2012

In 2013, Iconix acquired Lee Cooper from Sun Capital Partners.{{cite news|url=http://www.altassets.net/private-equity-news/by-news-type/deal-news/sun-european-partners-sells-lee-cooper-for-72m.html|title=Sun European Partners sells Lee Cooper for $72m |work=AltAssets Private Equity News|access-date=November 21, 2016}} In February 2013, Iconix acquired control of the Buffalo David Bitton brand in an effort to expand into higher-end brands. Iconix paid Buffalo International ULC $76.5 million in cash for a 51% stake in the brand.{{cite news|url=http://uk.reuters.com/article/deals-day-idUKL4N0B43WI20130204|archive-url=https://web.archive.org/web/20160307033310/http://uk.reuters.com/article/deals-day-idUKL4N0B43WI20130204|url-status=dead|archive-date=March 7, 2016|title=Deals of the Day 04/02/13 | publisher=Reuters UK | date=February 4, 2013}}

In February 2015, Iconix bought the Strawberry Shortcake brand from American Greetings.{{cite web|url=https://nypost.com/2015/02/03/strawberry-shortcake-is-new-it-girl-for-iconix/|title=Strawberry Shortcake is new 'it' girl for Iconix|first=Claire|last=Atkinson|date=February 3, 2015|access-date=November 21, 2016}} Also that month, Iconix and Anthony L&S Athletics, LLC acquired intangible assets of Pony along with North American rights to the brand from Symphony Holdings, LLC, with the option to purchase additional markets. A new subsidiary, with 75% and 25% stakes owned by Iconix and Anthony L&S Athletics respectively, would hold the Pony rights.{{cite web|url=http://footwearnews.com/2015/business/mergers-acquisitions/iconix-acquires-north-american-rights-pony-11079/|title=Iconix Acquires North American Rights for Pony|first=Katie|last=Abel|date=February 3, 2015|access-date=November 21, 2016}}

In 2015, several top executives, including founder Neil Cole, resigned following a statement that Iconix was under investigation by the Securities and Exchange Commission.{{Cite journal| issn = 0149-5380| volume = 211| issue = 1| pages = 60–64| last1 = Young| first1 = Vicky M.| last2 = Borcharot| first2 = Debra| title = Iconix What Went Wrong?| journal = WWD: Women's Wear Daily| access-date = August 10, 2017| date = January 6, 2016| url = http://wwd.com/business-news/business-features/problems-at-iconix-sec-investigation-neil-cole-10304943/}} The investigation was triggered by Iconix's 2014 financial statements, after which it received a letter from the SEC. Stock prices fell 24% after Iconix confirmed the investigation. {{Cite news|url=https://www.usatoday.com/story/money/2015/12/28/iconix-confirms-sec-investigation-shares-plunge/77968084/|title=Iconix confirms SEC investigation, shares plunge|last=McCoy|first=Kevin|work=USA TODAY|access-date=September 27, 2018|language=en}} On December 5, 2019, the SEC charged Iconix and three of its former top executives with fraud. The COO, Seth Horowitz, pleaded guilty to the charges, and Iconix agreed to pay a $5.5 million penalty. As of July 2020, the suit against the founder and previous CEO, Neil Cole, is still ongoing.{{cite web|url=https://www.sec.gov/news/press-release/2019-251/|title=SEC Charges Iconix Brand Group and Former Top Executives With Accounting Fraud}}{{cite web|url=https://www.reuters.com/article/us-iconix-brand-grp-fraud/iconix-brand-former-ceo-charged-with-accounting-fraud-idUSKBN1Y92DK|title=Former Iconix Brand CEO charged with accounting fraud in U.S.|date=December 5, 2019|website=Reuters|access-date=December 6, 2019}}{{cite web|url=https://www.justice.gov/usao-sdny/pr/former-chief-executive-officer-publicly-traded-brand-management-company-charged|title=Former Chief Executive Officer Of Publicly Traded Brand Management Company Charged With Accounting Fraud And Obstruction Of Justice|website=justice.gov|date=December 5, 2019 }}{{cite web|url=https://footwearnews.com/2019/business/legal-news/iconix-ceo-neil-cole-arrested-accounting-fraud-1202884434/|title=Former Iconix CEO Neil Cole Charged With Accounting Fraud|website=footwearnews.com|date=December 5, 2019 }}

In 2017, Iconix sold Badgley Mischka and The Sharper Image.[http://footwearnews.com/2016/business/mergers-acquisitions/badgley-mischka-titan-industries-buy-trademark-rights-iconix-198799/ Badgley Mischka And Titan Industries Buy Trademark Rights From Iconix][https://www.fool.com/investing/2017/01/11/iconix-brand-axes-the-sharper-image.aspx Iconix Brand Sells Off the Sharper Image]

On May 10, 2017, DHX Media announced that it had acquired the Iconix entertainment division for $345 million. The sale was closed on June 30, 2017, giving DHX rights to the Strawberry Shortcake franchise, and more prominently, the 80% majority stake of Peanuts Worldwide.{{cite web|title=DHX Media Acquires 'Peanuts' in $345 Million Purchase of Iconix|url=https://variety.com/2017/tv/global/dhx-media-acquires-peanuts-in-345-million-purchase-of-iconix-1202422001/|website=Variety|date=May 10, 2017 |access-date=May 10, 2017}}

On October 15, 2018, Iconix announced the hiring of Robert Galvin as CEO.{{Cite news|url=http://phx.corporate-ir.net/phoenix.zhtml?c=62075&p=irol-newsArticle&ID=2371651|title=Iconix Brand Group, Inc. Announces Hiring Of Robert Galvin As CEO|work=Iconix|access-date=October 16, 2018|language=en}}{{Dead link|date=January 2020 |bot=InternetArchiveBot |fix-attempted=yes }}{{cite web|url=https://footwearnews.com/2018/business/executive-moves/fashion-shoes-executives-hired-fired-october-2018-1202690848/|title=Industry Moves: October 2018|date=October 31, 2018|website=Footwear News|access-date=December 6, 2019}}

On July 14, 2020, Iconix announced that the company is up for sale.{{cite web|url=https://footwearnews.com/2020/business/mergers-acquisitions/iconix-brand-group-up-for-sale-1203023156/|title=Iconix Brand Group Is Open to Selling Itself as It Looks to Tidy Balance Sheet|website=footwearnews.com|date=July 14, 2020 }} The next year, the company went private, with private equity investor Lancer Capital, LLC purchasing all outstanding shares and delisting it from Nasdaq.{{cite press release|url=https://www.globenewswire.com/news-release/2021/06/11/2245934/0/en/Iconix-Enters-into-Definitive-Agreement-to-be-Acquired-in-Go-Private-Transaction.html |title=Iconix Enters into Definitive Agreement to be Acquired in "Go Private" Transaction|agency=GlobeNewswire |date=June 11, 2021}}

Federal investigations

After investigations in 2003, Neil Cole and Candie's reached an agreement to settle charges of fraudulent accounting practices brought against it by the Securities and Exchange Commission. Neil Cole agreed to pay $75,000 to settle charges without admitting or denying wrongdoing.{{Cite web|title = Candie's Settles SEC Case|url = https://nypost.com/2003/05/01/candies-settles-sec-case/|website = The NY Post| date=May 2003 |access-date = July 24, 2020}}

In 2019, Cole was again charged with 10 criminal counts, including conspiracy, securities fraud, making false filings with the SEC and conspiracy to destroy records.{{Cite news|title = Iconix Brands Ex-CEO Neil Cole Charged by U.S. in Accounting Fraud|url = https://www.bloomberg.com/news/articles/2019-12-05/iconix-brands-ex-ceo-cole-charged-by-u-s-in-accounting-fraud|website = Bloomberg| date=December 5, 2019 |access-date = July 24, 2020}} Iconix agreed to pay a civil penalty of $5.5 million to settle the SEC's claims.

Brands

Through its history, Iconix has owned a large portfolio of brands, which include:[https://www.iconixbrand.com/brands/ Brands archive] on IBG, August 17, 2020