Still no word. The future owner of HMX Group is up in the air as there was no report by the end of the business day Monday as to the result of the bankruptcy court auction.
Meanwhile, HMX’s chief executive officer, Doug Williams, filed court documents in response to an objection filed on Friday on behalf of the unsecured creditors committee to HMX’s request for court approval for the sale of the company. Williams said in a response document that while HMX bore the burden of proof on the sale motion, he felt “constrained to respond” because a number of the statements were directed squarely on him.
Williams also filed a declaration with the court, essentially stating the same information in both filings.
Williams disputed the committee’s charge that the auction process was not conducted on an even playing field. He told the court that the process was designed to offer flexibility to potential bidders, either 1) a bid for all or a portion of the assets, or 2) a bid as a “going concern” or liquidation for the assets.
He also noted that he was told by an independent director and the financial adviser handling the sale process that one prospective bidder, not Authentic Brands Group that later became the stalking-horse bidder, had suggested the idea of splitting up the intellectual property assets from the operating division and then licensing the trademarks to the operator.
WWD first reported in September that Iconix Brand Group was seriously interested in HMX. As a brand management firm, it would have needed an operator to run the business and was believed to have been looking for such an entity, according to sources at the time.
Williams said when formulating a structure for the stalking-horse bid, he required that Authentic agree for him to continue discussions with other prospective bidders.
In the declaration, Williams said he specifically rejected an offer from one bidder that required him to negotiate only with that party and no one else.
As for some of the other objections stated, such as his refusal to provide financials, Williams acknowledged that he did decline to do so as the requested information was connected to the post-sale business plan and other strategies for the post-closing operating unit.
The ceo emphasized the information was “proprietary and confidential in nature” and had no “bearing on the committee’s fiduciary duty to maximize asset value for the benefit of the estates’ creditors.” Williams said he was also concerned with the possibility of that information being used for “competitive advantage in future dealings with the post-closing operating entity.”
Williams also noted that Salus Capital Partners, which is providing financing to the operating division and was also cited in the objection, had “agreed, in principle, to discuss financing” for a similarly structured transaction involving a licensor other than Authentic Brands, “subject to considerations regarding the creditworthiness of the alternative” entity.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)