Legal troubles continue for Iconix Brand Group Inc.
The brand management firm said Monday in a regulatory filing that it has been contacted by the U.S Attorney’s Office in Manhattan regarding a probe. Iconix said the company “intends to cooperate fully” with the U.S. Attorney’s Office. Iconix added, “It is not possible to predict the outcome of these inquiries or their impact on the company, if any, at this time.”
Iconix previously said it received a formal order of investigation from the staff of the U.S. Securities and Exchange Commission in December 2015. That was in connection over the accounting treatment of certain joint ventures. It was never disclosed just exactly what the SEC was looking for, although Iconix subsequently disclosed it would restate its financial statements for certain periods.
Earlier this year in May, the SEC was able to get a Manhattan federal district court judge to compel rapper Jay Z to testify at an SEC deposition. The matter was in connection with the $169 million write-down of Rocawear, a hip-hop brand that Jay Z cofounded.
Monday’s filing did not disclose what the U.S. Attorney’s Office is looking into, or when it first contacted Iconix.
This year saw the naming of Robert Galvin as Iconix’s new chief executive officer in October. Galvin, a brand specialist, is expected to help the brand management firm rework its balance sheet. The company has debt of $717.6 million, or about eight-times the company’s annual earnings before interest, taxes, depreciation and amortization. When the company announced third-quarter results in November, it also said the results were hampered by the Sears Holdings Corp. bankruptcy filing in October. Its brands include Candie’s, Joe Boxer, Mossimo, London Fog, Ocean Pacific, Umbro and more.