Yak Pak, the fashionable backpack brand acquired by Accessory Network Group LLC less than a year ago, is about to hit the auction block as its former parent continues to look for financing.
This story first appeared in the February 27, 2012 issue of WWD. Subscribe Today.
Wells Fargo Trade Capital Services Inc. is listed as the secured creditor sponsoring the auction, to be held by the remarketing services division of Tiger Group LLC, with bids due by the close of business on March 6. Wells Fargo withdrew financing from ANG early this year and is believed to have taken the Yak Pak trademark as partial settlement of ANG’s debt.
Reached at his New York office, Abe Chehebar, chief executive officer of ANG, declined to comment on the matter except to say that he remained in talks about ANG’s future.
The loss of the Yak Pak brand, however, means that if ANG can effect a restructuring, it will proceed in an as-yet-undetermined form without most of the branded assets it held just six months ago. It acquired Yak Pak last March, two months after picking up the rights to the upscale Kooba trademark. ANG sold the Ghurka accessories and luggage brand to Brightwork Brand Holdings Corp. in September and, according to sources, proceeds from that sale were used to pay off a portion of its Wells Fargo debt.
ANG had held the rights to the Overture by Judith Leiber brand for handbags in a licensing arrangement with Judith Leiber Inc. Mary Gleason, president of the company, said it withdrew the license last summer and is now planning to relaunch it as an in-house initiative for fall.
The status of ANG’s predominantly private label cold-weather accessories business remains in limbo, sources said. Wiesner Products was among the companies that reportedly had been interested in acquiring that segment of the company.
The auction, being conducted through sealed bids, includes the Yak Pak trademark, trade name and related intellectual property.