In Form 10-Q filed on December 22, 2017, Iconix Brand Group, Inc. filed their unaudited financial statements for the quarterly period ended September 30, 2017. Due to certain developments, including the recent decision by Target Corporation not to renew the existing Mossimo license agreement and by Walmart, Inc. not to renew the existing DanskinNow license agreement with the Company and their revised forecasted future earnings, the Company has forecasted that they would be unlikely to be in compliance with certain financial debt covenants in 2018 and that may face possible liquidity challenges. This raises substantial doubt about its ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital and implement its business plan. If the Company cannot secure additional funds or otherwise satisfy the requirements for availability of the First Delayed Draw Term Loan, the Company will not have sufficient liquidity to repay its 1.50% Convertible Notes which will become due in March 2018 which could ultimately force the Company into bankruptcy or liquidation. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.