According to a regulatory filing, Sequential Brands Group Inc. said it amended its credit agreement with Wilmington Trust that extends a waiver of existing defaults under the agreement through April 19.
As part of the amendment, Wilmington Trust was given the right to appoint an independent majority of the Company’s Board of Directors, inclusive of Silvia Mazzucchelli and John Dionne, who currently serve as directors.
In light of the company’s expectation that the Wilmington Lenders will continue to be lenders as of April 1, Martha Stewart, on March 26, said she was resigning from the Board effective immediately. Three other board members, Al Gossett, Gary Johnson and Stewart Leonard, Jr., resigned, effective March 29.
Sequential Brands said none of the resignations involved a disagreement with the company on any matter relating to its operations, policies or practices.
After the resignations are effective, the Board is expected to consist of William Sweedler, Aaron Hollander, Mazzucchelli, and Dionne. The company’s bylaws provide that, effective April 1, 2021, the Board may not increase the number of directors to more than five members.
In an earlier filing, Sequential Brands said it would delay the release of its 10-K and fourth-quarter results due to the amended agreement. It expects to report results before April 15, 2021.
In December, Sequential Brands Group Inc. announced that its Board of Directors had relaunched a broad exploration of strategic alternatives available to the company to position it for success and maximize value. Strategic alternatives may include the sale of the company or the divestiture of one or more existing brands.
The company’s active brands include AND1, Gaiam, SPRI, and Avia. Other brands owned by Sequential Brands include Joe’s, Ellen Tracy, Jessica Simpson, William Rast, Heely’s, Caribbean Joe, DVS, and The Franklin Mint.
Photo courtesy Sequential Brands/Gaiam