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.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion