Cash-strapped NexCen Brands Inc. said it received “numerous expressions of interest” in its Bill Blass and Waverly brands and that it inked an agreement with its lender that will provide some additional financial breathing room, at least until July 17.
The agreement with BTMU Capital Corp. gives NexCen access to additional cash from its lockbox accounts and limited forbearance from “certain alleged defaults.” The company agreed to give monthly rather than quarterly updates on its operations and cash flow to the lender.
“This agreement is an important step in enabling us to continue to implement our operating plans for both our license and franchise businesses,” said Robert W. D’Loren, chief executive officer.
The company fell on troubled times last month when it disclosed that $30 million of the $70 million it borrowed to acquire Great American Cookies must be paid down by Oct. 17. Since then, NexCen has been working to slim its operations. On Friday, it said it had reduced its total workforce by 10 percent, a move expected to reduce cash outlays by about $3.5 million.
NexCen also confirmed that Bill Blass was up for sale, something which has been understood in the market for some time. “The company has received numerous expressions of interest in both the Bill Blass and Waverly brands from domestic and international strategic and financial buyers,” said NexCen.