Joe’s Jeans Inc. isn’t ready to give Peter Kim a look at its books.
Kim last week resigned as a director of Joe’s but remained chief executive officer of Hudson Jeans and its affiliates, which were acquired by Joe’s in 2013. With Joe’s currently in default on its term loan with Garrison Investment Group and its revolving credit facility with CIT Trade Finance, it has retained Carl Marks Advisory Group to advise the board on its options.
Kim has hired B. Riley & Co. LLC to advise him on his next moves, which could include an offer to buy back Hudson. Kim holds $14.3 million of convertible notes from Joe’s, convertible into stock equal to about 10 percent of the company’s equity.
Joe’s currently is prohibited from making payments on the notes because of the default.
Kim has asked Joe’s board to permit B. Riley access to financial information “under appropriate circumstances” but cautioned that there were no assurances Kim, Hudson’s founder, would make any proposals with respect to the company.
“To date, the company has not permitted B. Riley…access because, in part, the company…has recently engaged Carl Marks Advisory Group to advise the board on all of its alternatives with respect to the company’s current financial situation,” Joe’s said Monday in a regulatory filing with the Securities and Exchange Commission.
In Nasdaq trading Monday, shares of Joe’s rose 2 cents to 23 cents.