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.
“I think what’s so interesting about the #MeToo movement and this whole new wave of feminism in general, is that women are finally seeing, ’Oh I can start my own company, oh I can lear to code, oh I can leave my nine-to-five job and do the thing I want to do,” said @brooklyndecker ahead of her @sxsw talk for @createcultivate. The former model took the stage to share wisdom about networking and female-driven entrepreneurship. #wwdeye #sxsw (📷: @jgreenery)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.