Sequential Brands was granted a waiver that extends existing defaults on its credit agreement until June 7, according to a filing with the Securities & Exchange Commission.
In reporting fourth-quarter earnings on April 15, Sequential Brands noted that on November 16, 2020, it entered into the Fifth Amendment to the Third Amended and Restated Credit Agreement and Limited Waiver with the Wilmington Facility Loan Parties. The Fifth Amendment modified certain covenants under the agreement and provided a waiver through December 31, 2020 of defaults. The company received several extensions of the waiver in the first quarter of 2021 and the current extension was due to expire April 19, pending negotiations.
At the time, the company said it was continuing to evaluate strategic alternatives, including the divestiture of one or more existing brands or a sale of the company. On April 26, it reached a deal to sell Heelys to BBC International.
Other brands owned by Sequential Brands include AND1, Gaiam, SPRI, Avia, Joe’s, Ellen Tracy, Jessica Simpson, William Rast, Caribbean Joe, DVS, and The Franklin Mint.
Logo courtesy Sequential Brands
