NexCen Brands Inc agreed to sell its Waverly furniture business to Iconix Brand Group Inc. for $26 million in cash. NexCen, which in May expressed doubt about its ability to continue as a going concern, has cut jobs and has been exploring the sale of Waverly and the Bill Blass apparel label to streamline operations and boost liquidity.
The company, which acquires and manages global brands generating revenue through licensing and franchising, said it will use the proceeds from the sale to pay off all outstanding Waverly debt of $21.3 million.
NexCen said Iconix, which owns and licenses a popular collection of brands like Candie’s, Joe Boxer and Rocawear, will assume certain future liabilities associated with Waverly.
NexCen, whose franchised brands include ice cream brand MaggieMoo’s and retail footwear and accessories brand The Athlete’s Foot, said it continues to make progress in executing its revised strategic plan to focus on the franchising businesses.
The retail brand company said following the repayment of Waverly debt, the remaining proceeds, net of transaction expenses, will be used to pay down debt associated with the Bill Blass business.
The sale is expected to close within 30 days.
Shares of NexCen closed at 32 cents Friday on Nasdaq. Iconix shares closed at $13.06 Friday. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Anil D’silva)
