Cash-strapped NexCen Brands Inc. and BTMU Capital Corp. said Monday that they entered into a letter of agreement that extends a forbearance period by one week until this Friday.
The agreement with BTMU Capital Corp. gives NexCen access to additional cash from its lockbox accounts and limited forgiveness from “certain alleged defaults.” The company agreed to give monthly rather than quarterly updates on its operations and cash flow to the lender.
NexCen fell on troubled times in May when it disclosed that $30 million of the $70 million it borrowed to acquire Great American Cookies must be paid down by Oct. 17.
The initial period NexCen had to cure the defaults was set for July 17. That was later extended until Aug. 8 before the parties pushed back the date again.
NexCen said Monday that it and BTMUCC continue to work on finalizing agreements to effect a comprehensive restructuring of the company’s borrowing facility, and that it expects such agreements to be completed next week.
NexCen has been working since May to streamline operations. In June, the firm reduced its total workforce by 10 percent, a move expected to reduce cash outlays by about $3.5 million.
The company is also currently in exclusive talks with Windsong Apparel Group about the sale of Waverly, its home furnishings brand.
After the Waverly sale is completed, sources said NexCen will then focus on selling its Bill Blass brand.
According to a banking source, efforts so far to sell Blass have been less than rigorous. NexCen’s financial adviser only last week began sending out one-page information sheets that contained information about existing licenses for Blass.
NexCen, as a brand management company engaged in licensing, wouldn’t have much information about the Blass brand, other than licensing agreements in place and royalties in place for those agreements.
Consequently, any buyer would have to determine what it thinks it can do with the Blass label through brand extensions, channels of distribution and international expansion and make an offer based on those projections, the banker said.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews