NexCen Brands Inc. might be close to a deal for its home furnishings operation, Waverly Brands.
NexCen is believed to have signed an exclusivity agreement with Iconix Brand Group Inc., according to a source familiar with the sale activity. Both Iconix and NexCen declined comment.
The agreement would pave the way for intense negotiations over the terms of the final deal, which is expected to be in the range of between $30 million and $32 million, one source said. NexCen bought Waverly for $36.8 million in May 2007.
For Iconix, Waverly would present synergies with its Pillowtex operation, which the licensing and brand management firm bought in 2007 for $231 million in cash and contingent payments of up to an additional $15 million in cash, dependent on surpassing certain revenue targets.
Sources said NexCen is working first on the sale of Waverly, so funds from the transaction can be used to stabilize the company before embarking on a sale of its Bill Blass brand, which NexCen acquired in December 2006 for $54.6 million in cash and stock.
Earlier this month, the company bought the couture business of Blass, a move that ensures that whomever buys Blass will get complete control over the operation. While Iconix and Windsong Apparel Group are said to be eyeing Blass, along with Phillips-Van Heusen Corp., Arnold Simon's Designer Licensing Holdings, the jeanswear licensee for Blass and owner of 10 percent of the Blass trademark, is also keen on the brand.
In another development, NexCen has reached an agreement with lender BTMU Capital Corp. to lengthen the global brand management firm's payment extension period through Aug. 8. The forbearance had been set to end on Friday.
The cash-strapped company in May disclosed that $30 million of the $70 million it borrowed in the $89 million acquisition of Great American Cookies had to be paid by Oct. 17. Since then, NexCen has been working to trim its workforce and operations.
NexCen said Friday it will continue to work with BTMU on a comprehensive restructuring of the loan, which it intends to complete by Aug. 8.
According to documents filed with the Securities and Exchange Commission, the extension also permits NexCen, owner of the Bill Blass and Waverly brands, as well as several franchised restaurant chains, to withdraw about $8.7 million in funds from a lockbox account for working capital and to pay expenses.
Among the disbursements will be: $1.1 million in management fees accrued since May 31; $4.6 million for accrued accounts payable and expenses; $2.6 million to BTMU for accrued interest on outstanding notes, and another $418,000 to the lender for services rendered in the restructuring. An additional $552,000 in the lockbox account will be set aside for the payment of fees to BTMU's advisers.
NexCen will also release $152,000 from an unnamed subsidiary's bank account to use for accrued accounts payable, accrued expenses and working capital across the company's holdings, according to the regulatory filings.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@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)