Titan Global Holdings, Inc. has purchased the majority of all of the assets of Global Brand Marketing, Inc. (GBMI), including inventory, accounts receivable and intellectual property assets. Titan also said it hired the complete core of executives currently leading GBMI, including founder Killick Datta.
According to a filing with the SEC, the purchase price was $6.06 million. The purchase was financed through a credit facility pursuant to a loan and security agreement with Greystone Business Credit, GBMI's financier. Titan granted a security interest in all of GBMI's assets to the lenders as security for the loan.
GBMI, located in Santa Barbara, CA, owns the Dry-shoD, No Mass, Mehandi and Funflopps brand. Additionally, GBMI has been the global licensee for Nautica, Sean John and Seven For All Mankind. GBMI's biggest license, Diesel, announced in October plans to take the line in-house, ending a 10-year relationship with GBMI. GBMI sold the Pony brand last year.
Datta will become president and CEO of Titan Apparel, a subsidiary established as part of the acquisition. Shortly after the first of the year, Datta will outline the strategic initiatives and vision for this Titan unit.
GBMI has recently fallen into disarray. Since Diesel's move to take the license in-house, GBMI has laid off most of its staff and its four retail stores have been shuttered. Diesel also filed a lawsuit in New York against GBMI and Greystone, alleging breach of contract for failing to make royalty payments. Diesel is also looking to claim 158,927 pairs of Diesel-branded shoes located in a GBMI warehouse.
Titan, based in Dallas, is a holding company in the telecommunications and the electronics/homeland security business.
