Women’s Brands
Candie’s. Candie’s is known primarily as a junior lifestyle brand,
with products in the footwear, apparel and accessories categories, and the brand
has achieved high recognition for its flirty and fun image and affiliations
with celebrity spokespeople. Candie’s was established as a brand in 1977
and is Iconix’s longest held trademark. The primary licensee for Candie’s
is Kohl’s Department Stores, Inc., herein referred to as Kohl’s,
which commenced the roll out of the brand in July 2005 in all of its stores
in the United States with a multi-category line of Candie’s lifestyle
products, including sportswear, denim, footwear, handbags and intimate apparel.
Celebrity spokespeople for the Candie’s brand over the past two decades
have included Jenny McCarthy, Destiny’s Child, Kelly Clarkson, Hilary
Duff, Fergie, Hayden Panetierre, Britney Spears, Vanessa Hudgens, Lea Michele,
Carly Rae Jepsen, Bella Thorne and currently, Fifth Harmony. The brand is licensed
in Latin America, Southeast Asia, India and Korea and is sold through more than
700 Candie’s retail locations in China.
Bongo. The Bongo brand is positioned as a California lifestyle brand, with a
broad range of women’s and children’s casual apparel and accessories,
including denim, sportswear, eyewear, footwear and watches. The brand was established
in 1982. In February 2010, the Company signed an exclusive direct-to-retail
license agreement with Kmart Corporation, a wholly-owned subsidiary of Sears
Holding Corporation (herein referred to as Kmart/Sears), for the brand in the
United States. Bongo is a highly visible brand at Sears, with strong presence
across women’s apparel, accessories and footwear. Celebrity spokespeople
for the Bongo brand have included Liv Tyler, Rachel Bilson, Nicole Richie, Vanessa
Minnillo, Kim Kardashian, Jesse McCartney, Audrina Patridge, Lucy Hale and,
currently, actress Vanessa Hudgens. The Bongo brand is also licensed in Latin
America.
Badgley Mischka. The Badgley Mischka brand is known as a luxury couture eveningwear
brands. The brand was established in 1988 and was acquired by the Company in
October 2004. Badgley Mischka products are sold in the United States through
luxury department and specialty stores, including Bergdorf Goodman, Neiman Marcus
and Saks Fifth Avenue, with its largest retail categories being women’s
apparel, bridal, footwear, handbags and other accessories. Badgley Mischka products
are distributed internationally, primarily by our licensees based in the United
States and, also, through 12 Badgley Mischka retail locations in China. The
brand is also licensed in Europe, the Middle East, Korea and Canada. The Company
sold the Badgley Mischka brand in March 2016.
Joe Boxer. Joe Boxer is a highly recognized lifestyle brand known for its irreverent
and humorous image and provocative promotional events. The brand was established
in 1985 and was acquired by the Company in July 2005. Since August 2001, Kmart/Sears
has held the exclusive license for the brand in the United States covering apparel,
fashion accessories and home products for men, women, teens and children. In
recent years, Joe Boxer has been known for its memorable musical ad campaigns
on television and social media, such as "Ring in the Holidays." The
campaign drove added traffic to Kmart for Joe Boxer pieces during the holiday
season. The brand is also licensed in Europe, Latin America, and Southeast Asia.
Rampage. Rampage was established in 1982 and is known as a contemporary/junior
women’s sportswear brand. The brand was acquired by the Company in September
2005. Rampage products are sold through better department stores such as Macy’s
and Belk Stores, with the largest retail categories being footwear, outerwear,
intimate apparel and swimwear. Supermodels Petra Nemcova, Gisele Bundchen and
Bar Rafaeli have previously been the spokespersons for the Rampage brand and
have modeled for its campaigns in past seasons. The brand is also licensed in
Latin America, South Korea and Canada.
Mudd. Mudd is a highly recognizable junior lifestyle brand, particularly in
the denim, footwear and accessories categories. It was established in 1995 and
acquired by the Company in April 2006. In November 2008, the Company entered
into a multi-year licensing agreement with Kohl’s under which Kohl’s
became the exclusive retailer in the United States for apparel, footwear, fashion
accessories and jewelry. The brand was launched at Kohl’s in July 2009
and is currently sold in all Kohl’s stores in numerous categories. The
brand is also licensed in Latin America and Japan.
London Fog. London Fog is a classic brand known worldwide for its outerwear,
cold weather accessories, umbrellas, luggage and travel products. The brand
was established over 80 years ago and was acquired by the Company in August
2006. The brand is sold in a variety of categories through wholesale licenses
in the United States, primarily through the department store channel including
Macy’s and Dillards Department Store. Further, the Company has a direct-to-retail
license agreement for London Fog with Hudson’s Bay Corporation in Canada,
covering outerwear, apparel, accessories and lifestyle products. In recent years,
the celebrity spokespeople for the brand have been Christina Hendricks and Nicole
Scherzinger. Most recently, the London Fog spokespersons are Neil Patrick Harris
and David Burtka. The brand is also licensed in Latin America, Europe, India
and Korea and is sold through more than 60 London Fog retail locations in China.
Mossimo. Mossimo is known as a contemporary, active and youthful lifestyle brand
and is one of the largest apparel brands in the United States. The brand was
established in 1986 and acquired by the Company in October 2006. Since 2000,
Target Corporation, herein referred to as Target, has held the exclusive license
in the United States and Canada, covering apparel products for men, women and
children, including casual sportswear, denim, swimwear, bodywear, watches, handbags
and other fashion accessories. Target sells Mossimo apparel and other products
chain-wide. The brand is also licensed on a direct-to-retail basis to Falabella
Retail S.A. in Latin America and to wholesale licensees in Europe, Latin America,
Southeast Asia, Australia, India and Japan.
Ocean Pacific/OP. (58% Women’s, 42% Men’s) Ocean Pacific and OP
are global action-sports lifestyle apparel brands which trace their heritage
to Ocean Pacific’s roots as a 1960’s surfboard label. The Company
acquired the Ocean Pacific/OP brands in November 2006 and in 2007, the OP business
in the United States was converted to a direct-to-retail license with Wal-Mart
Stores, Inc. (herein referred to as Wal-Mart). In Spring 2008, OP launched exclusively
in select Wal-Mart stores in the United States, and was expanded to all stores
in 2009. Currently the brand is distributed by Wal-Mart as a direct-to-retail
license in the United States, Canada, parts of Latin America and the Middle
East, with products that include apparel, footwear and swim for men, women and
children. OP is distributed via a direct-to-retail license with Sports Direct
in Europe. Celebrity endorsers for the brand include Ashley Tisdale, Sarah Hyland
and Matt Lanter, and most recently Hannah Davis. The brand is also licensed
via wholesalers in certain parts of Latin America and Europe.
Danskin/Danskin Now. Danskin is a 126 year-old iconic brand of women’s
activewear, ath-leisure, legwear, dancewear, yoga apparel and fitness equipment,
which the Company acquired in March 2007. Danskin has maintained a legacy of
health, strength and female empowerment in its core values. During the year
ended December 31, 2014 (“FY 2014”), Danskin extended its contract
with Giuliana Rancic to remain the face of its marketing campaign to authentically
represent these attributes. The primary license for the Danskin brand is a direct-to-retail
license with Wal-Mart for Danskin Now in the United States, Canada and parts
of Latin America covering a wide range of women’s and girl’s apparel,
activewear, ath-leisure, footwear, accessories and fitness equipment in every
store. In addition, the Danskin brand continues to be sold through better department,
mid-tier, specialty and sporting goods stores, as well as through Danskin.com
by wholesale licensees in the United States. In 2014, the brand re-launched
its e-commerce site, blog, and expanded its social media efforts. Sustaining
its heritage with dance, Danskin formed a new partnership with the School of
American Ballet and continued its support of the New York City Ballet. The Danskin
brand is also licensed in Latin America and Europe.
Men’s Brands:
Rocawear/Roc Nation. Rocawear is a leading youth culture brand, established
by Shawn “Jay-Z” Carter and his partners in 1999. The Company acquired
the Rocawear brand in March 2007. Rocawear is currently licensed in the United
States in a variety of categories, including men’s, women’s and
kids’ apparel, outerwear, footwear, jewelry and handbags. Rocawear products
are sold primarily through department and specialty stores nationwide. The brand
is also licensed in Europe, Japan, Latin America, Canada and Southeast Asia.
In July 2013, the Company acquired the global rights to the “Roc Nation”
name, a higher-end halo brand of Rocawear, associated with the Roc Nation entertainment
and talent agency currently licensed in the U.S.
Starter. Founded in 1971, Starter is one of the original brands in licensed
team sports merchandise and is a highly recognized brand of athletic apparel
and footwear. The Company acquired Starter in December 2007. At the time of
the acquisition, the brand was distributed in the United States primarily at
Wal-Mart through a number of wholesale licensees. In July 2008, the brand was
converted to a direct-to-retail license with Wal-Mart and is currently sold
in all stores in the United States and Canada. The Starter brand has been worn
by some of the greatest athletes in MLB, NBA, NFL and NHL and the 2015 ambassadors
for the brand included Kevin Love and Eric Decker. Most recently, the Company
has partnered with all the major professional sports leagues and over one hundred
NCAA universities throughout the U.S. to re-launch the iconic Starter satin
jacket, sold through various specialty stores, sporting goods stores and online.
In addition, the brand is licensed in Africa, Australia, Europe, Latin America,
Japan, the Middle East and South Korea.
Zoo York. Zoo York is an East Coast-based action lifestyle brand, named for
the graffiti-art infused counterculture of 1970’s New York City. Zoo York
has licenses with wholesalers covering a variety of products, including men’s,
women’s and kids’ apparel, footwear, socks and accessories. The
Company acquired a 51% interest in the Zoo York brand as part of the Ecko Untld.
acquisition in 2009, and the Company increased its ownership to 100% in 2011.
Zoo York is currently distributed in department stores including Kohl’s,
JCPenney, and Stage Stores. Celebrity spokespeople for the brand include professional
skateboarders Chaz Ortiz and Brandon Wesgate. In FY 2014, with the permission
of the NY Yankees, Zoo York unveiled a highly viewed video of the skate team
riding in an empty Yankee Stadium. The brand is also licensed in Africa, Australia,
Canada, Europe, Latin America and Southeast Asia.
Umbro. Founded in 1924, Umbro is a global football (soccer) brand. The brand
combines British heritage with a modern football lifestyle to create iconic
sports apparel and footwear with high global awareness and strong global distribution.
The Company acquired the Umbro brand in November 2012. The Company and its licensees
sponsor hundreds of national and league teams worldwide. Umbro products are
sold globally through a strong network of licensees and partners in the United
States, Canada, Australia, Africa, Asia, Europe, India and Latin America. In
the U.S. the Company has a direct-to-retail license with Dick’s Sporting
Goods. There are also U.S. wholesale licenses for adult and youth apparel, footwear,
eyewear, hosiery, underwear/lounge and team wear, with distribution in department
stores and specialty stores.
Lee Cooper. Founded in 1908, Lee Cooper is an iconic British denim brand that
has expanded into multiple lifestyle categories including men’s, women’s
and kids’ casual wear, footwear and accessories. The Company acquired
the Lee Cooper brand in February 2013. Lee Cooper has global reach through more
than 40 licensees with product sold in Australia, Africa, Asia, Europe, India
and Latin America.
Ecko Unltd, Marc Ecko Cut & Sew. In October 2009, the Company, through a
then newly formed joint venture company IPH Unltd, acquired a 51% controlling
stake in the Ecko portfolio of brands. In May 2013, the Company purchased the
remaining 49% interest from its minority partner, increasing its ownership in
IPH Unltd from 51% to 100%. Founded in 1993, Ecko and its various brands are
marketed and sold to consumers in the youth culture lifestyle categories, including
active-athletic, streetwear, collegiate/preppy and denim fashion for men, women
and children. Ecko Unltd. products are sold primarily through department and
specialty stores including Dillard’s and JCPenney. Ecko Unltd. brand ambassadors
include professional skateboarder Manny Santiago and professional boxers Miguel
Cotto and Danny Garcia. Marc Ecko Cut & Sew is a halo brand, licensed in
men’s apparel, outerwear, underwear, fragrance and accessories. It is
distributed in boutiques, specialty stores and Dillard’s Department Store.
The Ecko brands are also licensed in Africa, Canada, Europe, Japan, Latin America,
the Middle East, Southeast Asia and China, where product is sold in branded
retail stores.
Scion- Artful Dodger, Billionaire Boys Club/BBC, Ice Cream. Scion, a joint venture
with Shawn “Jay-Z” Carter in which the Company has a 50% interest,
is a brand management and licensing company formed in March 2007 to buy and
license brands across a spectrum of consumer product categories. In November
2007, Scion, through its wholly-owned subsidiary, Artful Holdings LLC, purchased
the Artful Dodger brand, a high end urban apparel brand. Also, in May 2012,
Scion purchased a 50% interest in the Billionaire Boys Club (“BBC”)
and Ice Cream brands. BBC and Ice Cream are licensed for distribution in high
end boutiques and department stores. Pharrell Williams, the iconic singer-songwriter,
rapper, record producer, and fashion designer is the founder and an equity partner
in these brands. In July 2015, the Company acquired the remaining 50% interest
in the Scion joint venture which increased the Company’s ownership interest
in Scion, and as a result, Artful Dodger, to 100%. The brands have been worn
by celebrities such as Justin Bieber, Miley Cyrus, Beyoncé, Rihanna,
and Jay Z. BBC and Ice Cream, were also licensed in Australia, Europe, Japan
and the Middle East. The Company sold its interest in the BBC and Ice Cream
brands in January 2016.
Home Brands:
Cannon. Cannon was established in 1887 and is one of the most recognizable brands
in home textiles. It has a strong heritage and is known as the first textile
brand to sew logos onto products. The Company acquired Cannon as part of the
2007 Pillowtex acquisition. At the time of the acquisition, the brand was distributed
in various regional department stores. In February 2008, the Company signed
a direct-to-retail license with Kmart/Sears for Cannon to be sold exclusively
in the United States and Canada in multiple categories. In addition, the brand
is licensed in Australia, India, Latin America, Europe, the Middle East and
Southeast Asia.
Royal Velvet. Royal Velvet is a distinctive luxury home textile brand that strives
to deliver the highest quality to consumers. The Royal Velvet towel has been
an industry standard since 1954. Royal Velvet products include towels, sheets,
rugs, bedding and window treatments. The Company acquired Royal Velvet as part
of the 2007 Pillowtex acquisition. In April 2011, the Company entered into a
direct-to-retail license with JC Penney Corporation, Inc., (herein referred
to as JC Penney), for the Royal Velvet brand to be sold exclusively in JC Penney
stores in the United States, which commenced in February 2012. In addition,
the brand is licensed in Canada, Latin America, and the Middle East.
Fieldcrest. Fieldcrest was established in 1893 and is a brand known for quality
bed and bath textiles that are classic in style. The Company acquired Fieldcrest
as part of the 2007 Pillowtex acquisition. Since 2005, the Fieldcrest brand
has been licensed exclusively to Target in the United States. Categories include
fashion bedding, bath, towel, rugs, basic bedding and sheets. The brand is also
licensed in Australia, Latin America, Canada and the Middle East.
Charisma. Charisma home textiles were introduced in the 1970’s and are
known for their quality materials and classic designs. The Company acquired
Charisma as part of the 2007 Pillowtex acquisition. In February 2009, the Company
signed a direct-to-retail license with Costco Wholesale Corporation, (herein
referred to as Costco), for certain Charisma products to be sold in Costco stores
in the United States and other countries. The brand is also licensed in the
United States and Canada for distribution through better department stores such
as Belk, BonTon, Bed Bath & Beyond, Neiman Marcus and Horchow. Celebrity
spokespeople for the brand have included Kellan Lutz, Eddie Cibrian and Scott
Foley. Charisma is licensed in Australia, Canada, Korea and the Middle East.
Waverly. Founded in 1923, Waverly is a premier home fashion and lifestyle brand
and one of the most recognized names in home decor. The Company acquired Waverly
in October 2008. Waverly has a direct-to-retail agreement in the United States
with Wal-Mart for the Waverly Inspirations Collection covering fabrics and craft.
Waverly also has wholesale licensees in the United States for products including
fabric, window treatments/décor and bedding that are sold through retailers
such as Jo-Ann’s, Lowe’s and Belk and other specialty retailers.
The Waverly brand is also licensed in Australia, Canada, Europe, the Middle
East and Southeast Asia.
Sharper Image. Founded in 1977, Sharper Image is a lifestyle brand with unique
product assortments across a range of categories including consumer electronics,
home goods, luggage, eclectic gifts and kitchen accessories. The Company acquired
the Sharper Image brand in October 2011. In the United States, Sharper Image’s
innovative products are broadly distributed through department/specialty stores,
clubs, and consumer electronics retailers. Recent marketing campaigns for the
brand have included world-renowned spokespersons Heidi Klum, Betty White, Megan
Fox and Josh Duhamel. The brand is also licensed in Canada, Japan and Mexico.
Entertainment Brand:
Strawberry Shortcake. In March 2015, the Company completed its acquisition of
the Strawberry Shortcake brand and related intangible assets and license agreements
from American Greetings Corporation and its wholly-owned subsidiary, Those Characters
From Cleveland, Inc.
The iconic Strawberry Shortcake character made her debut 35 years ago and today
is a global brand with a diversified network of over 350 licensees. Strawberry
Shortcake has had a strong international business, with revenue outside of the
U.S. representing approximately 50% of total sales. The two largest international
markets include Turkey and Brazil, where the brand is highly recognized as a
local brand, marketed as Moranguinho in Brazil. Its television, apps and toy
businesses have also been a large part of the multi-generational appeal of the
brand. The show currently runs on Discovery Kids, Latin America’s top
kids cable channel and is a top girls show on Netflix. It is also a top Girls
Property in the IOS App Store, with over 86 million downloads and approximately
three million daily users. Additionally, it has an active YouTube following
globally and has been a top-selling girls’ toy brand marketed by Hasbro
and Bandai over the years.
Brands Held by Iconix with Equity Partners
Women’s Brands:
MG Icon—Material Girl. MG Icon, a joint venture in which the Company has
a 50% interest, was formed by the Company with Madonna and Guy Oseary in March
2010 to buy, create, develop and license brands across a spectrum of consumer
product categories, with Madonna serving as the creative director. Concurrent
with the formation of this joint venture, MG Icon entered into a direct-to-retail
license with Macy’s Retail Holdings, Inc. (herein referred to as Macy’s),
for the Material Girl brand covering a wide array of consumer categories. Ambassadors
for the Material Girl brand have included Zendaya, Rita Ora and Kelly Osborne,
and most recently Sofia Richie. Material Girl is also licensed in Australia,
Canada and Southeast Asia and sold in more than 60 branded retail locations
in China.
Buffalo Brand Joint Venture—Buffalo by David Bitton. In February 2013,
the Company formed a joint venture with Buffalo International ULC in which the
Company effectively purchased a 51% interest in the Buffalo trademarks and related
assets. Founded in 1985, Buffalo is a lifestyle brand consisting of denim, sportswear,
active wear, and accessories. Buffalo is sold primarily through better department
stores including Macy’s, Dillard’s and Lord & Taylor. Celebrities
that have recently appeared in campaigns are Chandler Parsons, Eric Decker,
Erin Heatherton, Adrian Grenier and Amber Arbucci. Additionally, the brand is
licensed in Latin America.
Men’s Brands:
Hardy Way- Ed Hardy. In May 2009, the Company acquired a 50% interest in Hardy
Way, the owner of the Ed Hardy brand and trademarks. In April 2011, the Company
made an additional investment in Hardy Way which effectively increased its ownership
interest to 85%. Don Ed Hardy and his artwork date back to 1967 when he transformed
the tattoo business into an artistic medium. He began licensing his name and
artwork for apparel in 2003 and today the Ed Hardy brand is recognized by its
tattoo inspired lifestyle products. The brand is licensed to wholesalers in
the United States for men’s, women’s, and kids’ apparel, footwear
and accessories. Distribution in the United States includes a wide base of retail
stores, from Target to Walgreens. Celebrities that have worn the brand include
Shakira, Lil Wayne, Madonna, Dwight Howard, Jessica Alba and Eva Longoria. In
China, the brand is sold through 79 Ed Hardy retail locations. The brand is
also licensed in Canada, India, Japan, Latin America, the Middle East and Southeast
Asia.
Icon Modern Amusement—Modern Amusement. In December 2012, the Company
entered into an agreement with Dirty Bird Productions, Inc., in which the Company
purchased a 51% interest in the Modern Amusement trademarks and related assets.
Modern Amusement is a premium, west coast-lifestyle brand with a focus on casual
sportswear apparel and related accessories for young men and young women. Modern
Amusement has a direct-to-retail license in the U.S. with PacSun which distributes
men’s apparel and footwear. The brand is also licensed in Australia, Canada
and the United Kingdom.
NGX, LLC—Nick Graham. In October 2014, the Company formed a joint venture
with NGO, LLC (“Nick Graham”) in which the Company purchased a 51%
interest in the Nick Graham trademarks and related assets. Founded in 2013,
Nick Graham is a men’s lifestyle brand, which launched sets of dress shirts
and ties sold at multiple levels of retail – including Macy’s, JCPenney,
Kohl’s, and Target. Nick Graham, a businessman, marketer and entrepreneur,
is the founder of the Joe Boxer brand and operates the core licensee for the
distribution of dress shirts and ties.
Hydraulic IP Holdings, LLC - Hydraulic. In December 2014, the Company formed
a joint venture with Top On International Group Limited in which the Company
effectively purchased a 51% interest in the Hydraulic trademarks and related
assets. Hydraulic was founded in New York in 1998 and is known for setting the
blue jean standard in the denim market for junior’s, women’s and
plus sizes. Hydraulic differentiates itself from other denim brands by positioning
itself with the theme that all denim was not created equally. Hydraulic is currently
distributed in department stores, including a strong presence at Kohl’s,
and is licensed for women’s and kids’ apparel in the United States.
US Pony Holdings, LLC – Pony / Product of New York. In February 2015,
the Company through its newly-formed subsidiary, US Pony Holdings, LLC, acquired
the North American rights to the Pony / Product of New York brand. These rights
include the rights in the United States obtained from Pony, Inc. and Pony International,
LLC (collectively, referred to as US Pony Seller), and the rights in Mexico
and Canada obtained from Super Jumbo Holdings Limited (referred to as Non-US
Pony seller and, together with US Pony Seller, the Pony Sellers). The purchase
price was $37.0 million US Pony Holdings, LLC is owned 75% by the Company and
25% by its partner, Anthony L&S Athletics, LLC. Additionally, the Company
received an option to purchase, until February 28, 2015, from the Pony Sellers
and their affiliates certain IP related assets and trademarks related to the
Pony brand in Europe, the Middle East and Africa. The Company also received
a 90-day option, expiring May 29, 2015, to purchase from the Pony Sellers and
their affiliates certain IP related assets and trademarks related to the Pony
brand in Latin America. Neither of such options were exercised.
Formed in 1972 in New York City, PONY became one of the top athletic footwear
brands worldwide in the 1990's appearing on professional athletes in the NBA,
NFL, MLB, Pro Soccer, Pro Tennis, and Pro Boxing. In Q4 2015, the Company launched
a multi-faceted marketing campaign highlighting the acronym for Pony, Product
of New York. The digital and social media campaign aimed at Millennials, paid
homage to the brand’s New York City roots.
Entertainment:
Peanuts Worldwide – Peanuts, Charlie Brown, Snoopy. In June 2010, the
Company, through its wholly-owned subsidiary Icon Entertainment LLC, acquired
an 80% controlling stake in Peanuts Holdings, which, through its wholly-owned
subsidiary, Peanuts Worldwide, owns and manages the Peanuts brand and characters,
including Snoopy, Charlie Brown, Lucy, Linus, Peppermint Patty, Sally, Schroeder,
Pig-Pen and Woodstock. The Company’s 20% partner in Peanuts Holdings is
the family of Charles Schulz, the creator of the Peanuts brand and characters.
Peanuts has a strong diversified global licensing platform with over 700 licensing
agreements including relationships with MetLife, ABC Network, Hallmark, Universal
Studios Japan, Warner Bros., Target, Uniqlo, Zara, Benetton, J+J and Nestle.
In October 2012, the Company entered into an agreement with Twentieth Century
Fox Animation to produce The Peanuts Movie, an animated film featuring the iconic
Peanuts characters, which was released November 2015 to great critical and popular
acclaim in over 100 countries. The film went on to be nominated for a Golden
Globe for Best Animated Picture of the year. In 2015, the property celebrated
the 65th anniversary of the comic strip, and the 50th anniversary of A Charlie
Brown Christmas with a star-studded ABC special featuring Kristen Bell as host,
launched a commemorative stamp program with the United States Postal Service
in 30,000 of its stores, and with Anniversary concerts at the San Francisco
Symphony and Carnegie Hall. Peanuts, we believe, is the most engaging character
brand on Facebook. Its largest international market is Japan, where a new Snoopy
Tokyo Museum will be opening in April 2016. The Peanuts brand is licensed in
over 100 countries.
International Joint Ventures
The Company’s primary purpose in forming international joint ventures
is to bring its brands to market more quickly and efficiently, generating greater
short- and long-term value from its IP than the Company believes is possible
if it were to build-out wholly-owned operations on its own across a multitude
of regional or local offices. The success from the company’s first two
international joint ventures demonstrate how this approach has enabled its brands
to increase licensed revenue, market share and profitability beyond what the
Company believes it could have achieved on its own. As an example, in China,
at the time of formation of the Iconix China joint venture, the Company’s
brands had minimal presence. Today, the Company’s brands have more than
1,000 stores, shops-in-shops and counters across China. Similarly, in Latin
America, revenue for the Company’s brand investments increased 77% by
the end of year two of the joint venture and grew 349% by the end of year five
of the joint venture. When the Latin American joint venture was formed in December
2008, the Company had sixteen wholesale licenses and nine direct-to-retail agreements.
Today, the Company has more than fifty licenses and six direct-to-retail licenses
with retailers including Falabella, Renner, Suburbia and Wal-Mart.
To get best-in-class local partners to invest in and represent the Company’s
brands in their respective territories, the Company offers its partner the ability
to buy equity interests in the IP. These equity interests provide the Company’s
partners with the necessary incentive to devote management time and resources
to the brands. By leveraging the partners’ local market expertise, retail
relationships, wholesale networks, business contacts and staff, including hundreds
of employees across numerous cities worldwide, the Company has significantly
grown licensing royalties in key global markets, collected monies owed by licensees
more effectively and maintained stricter enforcement against counterfeit products.
Since 2008, the formation and administration of international joint ventures
have been a central and ongoing component of our business, and the Company has
established the following international joint ventures: Iconix China, Iconix
Latin America, Iconix Europe, Iconix India, Iconix Canada, Iconix Australia,
Iconix Southeast Asia, Iconix Israel and Iconix Middle East. As these businesses
in each territory reach sufficient scale to support the Company’s full
business structure of brand management, marketing, licensing, acquisitions and
finance, the Company may consider acquiring control or full ownership of the
joint ventures, where possible, as was the case in Latin America in 2014 and
in China in 2015.
Iconix China
In September 2008, the Company and Novel Fashions Holdings Limited, (referred
to as Novel), formed a joint venture, Iconix China, to develop, exploit and
market the Company’s brands in the People’s Republic of China, Hong
Kong, Macau and Taiwan, (herein referred to as Greater China). In the initial
phase of the joint venture, Iconix China sought to maximize brand monetization
through investment, whereby Iconix China received a minority equity stake in
local operating companies in exchange for the rights to one or more of the Company’s
brands in Greater China and brand management support. Pursuant to the terms
of this transaction, the Company contributed to Iconix China substantially all
rights to its brands in Greater China and contributed $2.0 million, and Novel
contributed $17 million to Iconix China. In March 2015, the Company purchased
the 50% of the equity interests in Iconix China from its partner, increasing
the Company’s ownership of Iconix China from 50% to 100%.
Iconix China successfully placed several brands into joint ventures including
Candie’s and Marc Ecko Cut & Sew with Shanghai La Chapelle Fashion
Co. Ltd (HK 6116); London Fog with China Outfitters (HK1146); Material Girl
with Ningbo Peacebird; Ed Hardy with Landmark International; and Ecko Unltd.
with Xi Ha Clothing. These brands are collectively sold through more than 1,000
branded retail locations.
Iconix Latin America
In December 2008, the Company formed a joint venture partnership, (“Iconix
Latin America”), with New Brands, an affiliate of the Falic Group, to
develop, exploit, market and license the Latin American territory comprising
of Mexico, Central America, South America and the Caribbean. In February 2014,
the Company purchased from New Brands its 50% interest in Iconix Latin America
for $42.0 million, increasing the Company’s ownership to 100%. Today,
Iconix Latin America has over fifty licenses with key direct-to-retail licenses
with Falabella, Renner, Wal-Mart and Suburbia.
Iconix Europe
In December 2009, the Company contributed substantially all rights to its wholly-owned
brands in all member states and candidate states of the European Union, and
certain other European countries, to Iconix Europe, a then newly formed wholly-owned
subsidiary of the Company. Shortly thereafter, an investment group led by Albion
Equity Partners LLC, purchased a 50% interest in Iconix Europe for $4 million
through Brand Investments Vehicle Group 3 Limited (“BIV”). Also,
as part of this transaction, Iconix Europe entered into a multi-year brand management
and services agreement with The Licensing Company to assist in developing, exploiting,
marketing and licensing the contributed brands in the European territory.
In January 2014, the Company consented to the purchase of BIV’s 50% ownership
interest in Iconix Europe by LF Asia Limited (“LF Asia”), an affiliate
of Li & Fung Limited, in exchange for $1.5 million from LF Asia. In addition,
the Company acquired an additional 1% equity interest in Iconix Europe from
LF Asia thereby increasing the Company’s ownership in Iconix Europe to
a controlling 51% interest. LF Asia, our joint venture partner in Iconix SE
Asia, had recently acquired several licensing companies including The Licensing
Company in Europe.
Li & Fung is an investment holding company principally engaged in managing
the supply chain for retailers and brands worldwide from over 300 offices and
distribution centers in more than 40 countries generating $19 billion of revenue
in 2013. Its subsidiary, LF Asia, is principally engaged in the licensing and
wholesale business of global brands.
Iconix Europe has multiple direct-to-retail partnerships including OP with Sports
Direct, one of UK’s leading sports retailers, Danskin with Go Sport and
both Danskin and Starter with S-Group/Prisma as well as a wide range of licenses
in multiple territories for key brands such as Ecko Unltd., Zoo York, Mossimo,
and Rocawear.
Iconix India
In May 2012, the Company contributed substantially all rights to its wholly-owned
and controlled brands in India to Imaginative Brand Developers Private Limited,
now known as Iconix Lifestyle India Private Limited (“Iconix India”),
a then newly formed subsidiary of the Company. Shortly thereafter, Reliance
Brands Limited (“Reliance”), purchased a 50% interest in Iconix
India for $6.0 million. Reliance is an affiliate of Reliance Industries Limited,
one of India’s largest private sector enterprises.
Iconix India has signed many long-term licensing partnerships and strong direct-to-retail
licenses including licenses for Mossimo, London Fog, Umbro and Cannon and licenses
with some of the largest companies in India including Future Group, Arvind and
Kapsons.
Iconix Canada
In June 2013, the Company contributed substantially all rights to its wholly-owned
and controlled brands in Canada into two entities: Ico Brands L.P. (“Ico
Brands”) and Iconix Canada L.P. (“Ico Canada”) and together
with Ico Brands, collectively “Iconix Canada”). Shortly thereafter,
through their acquisitions of limited partnership and general partnership interests,
Buffalo International ULC and its affiliates (“BIU”) purchased a
50% interest in Iconix Canada for an aggregate of $17.8 million.
Buffalo International ULC (“BIU”) is based in Montreal, Canada and
its management team has extensive experience working in the apparel industry.
Since founding the Buffalo brand in 1985, the management team has established
over 3,000 points of distribution for the brand. In February 2013 the Company
acquired a controlling interest in the Buffalo by David Bitton brand and extended
that relationship through Iconix Canada.
Iconix Canada has many direct-to-retail licenses including OP, Starter and
Danskin Now at Wal-Mart, and London Fog at The Bay as well as a wide range of
licenses for key brands such as Ecko Unltd., Charisma, Danskin, and Umbro.
Iconix Australia
In September 2013, the Company contributed substantially all rights to its wholly-owned
and controlled brands in Australia and New Zealand (the “Australia Territory”)
to Iconix Australia, LLC (“Iconix Australia”), a then newly formed,
Delaware limited liability company and a wholly-owned subsidiary of the Company,
through an exclusive, royalty-free perpetual master license agreement with Iconix
Australia. Shortly thereafter, Pac Brands USA, Inc. (“Pac Brands USA”)
purchased a 50% interest in Iconix Australia for $7.2 million from the Company
to assist the Company in developing, exploiting, marketing and licensing the
Company’s brands in the Australia Territory.
Iconix Australia has licensed many brands in the territory including Cannon,
Mossimo, Starter, Umbro and Zoo York as well as a substantial direct-to-retail
license for Lee Cooper at Big W.
Iconix Israel
In November 2013, the Company contributed substantially all rights to its wholly-owned
and controlled brands in the State of Israel and the geographical regions of
the West Bank and the Gaza Strip (together, the “Israel Territory”)
to Iconix Israel LLC (“Iconix Israel”), a then newly formed subsidiary
of the Company through an exclusive, royalty-free perpetual master license agreement
with Iconix Israel. Shortly thereafter, M.G.S. Sports Trading Limited (“MGS”)
purchased a 50% interest in Iconix Israel for approximately $3.4 million to
assist the Company in developing, exploiting, marketing and licensing the Company’s
brands in the Israel Territory.
MGS, established in 1986 by Gideon Moliov, is the largest wholesale apparel
company in Israel. MGS is one of Israel’s leading companies in sports
and fashion and they are a distributor and/or licensee for Adidas, Converse,
Diadora, Superga and many other brands. MGS has over 1,500 employees and operates
over 70 retail stores including Mega Sport, the largest sports chain in Israel.
MGS and its affiliated companies, have licenses for Umbro, OP and Ecko which
they distribute through their vast wholesale network and through its Mega Sport
stores. Iconix Israel also includes a license with Brill Fashion for Lee Cooper,
operators of over 40 Lee Cooper branded retail stores.
Iconix Southeast Asia
In October 2013, the Company contributed substantially all rights to its wholly-owned
and controlled brands in Indonesia, Thailand, Malaysia, Philippines, Singapore,
Vietnam, Cambodia, Laos, Brunei, Myanmar and East Timor (together, the “Southeast
Asia Territory”) to Lion Network Limited (“Iconix SE Asia”),
a then newly formed subsidiary of the Company through an exclusive,
royalty-free perpetual master license agreement with Iconix SE Asia. Shortly
thereafter, LF Asia Limited (“LF Asia”), an affiliate of Li &
Fung Limited, purchased a 50% interest in Iconix SE Asia for $10 million to
assist the Company in developing, exploiting, marketing and licensing the Company’s
brands in the Southeast Asia Territory.
In June 2014, the Company amended Iconix SE Asia by contributing substantially
all rights to its wholly-owned and controlled brands in the territory of South
Korea, and the Company’s Marc Ecko Cut & Sew, Ecko Unltd., Zoo York,
Ed Hardy and Sharper Image brands in the European Union and Turkey, in each
case, to Iconix SE Asia. In return, LF Asia agreed to pay the Company $15.9
million.
During September 2014, the Iconix SE Asia territory was further amended to
include China, Macau, Hong Kong and Taiwan for the Umbro and Lee Cooper marks.
In respect of its 50% interest in the joint venture, Global Brands Group Asia
Limited f/k/a LF Asia (“GBG”), agreed to pay the Company $21.5 million.
In December 2015, the Company purchased GBG’s effective 50% interest in
the Umbro and Lee Cooper marks in Greater China for $24.7 million. Iconix Southeast
Asia has licensed many key brands in the Southeast Asia Territory including
Cannon, Ecko Unltd. Ed Hardy, Lee Cooper, Mossimo, Rocawear, and Umbro.
Iconix Middle East and North Africa
In December 2014, the Company contributed substantially all rights to its wholly-owned
and controlled brands in the United Arab Emirates, Qatar, Kuwait, Bahrain, Saudi
Arabia, Oman, Jordan, Egypt, Pakistan, Uganda, Yemen, Iraq, Azerbaijan, Kyrgyzstan,
Uzbekistan, Lebanon, Tunisia, Libya, Algeria, Morocco, Cameroon, Gabon, Mauritania,
Ivory Coast, Nigeria and Senegal (the “MENA Territory”) to Iconix
MENA LTD (“Iconix MENA”), a then newly formed subsidiary of the
Company through an exclusive, royalty-free perpetual master license agreement
with Iconix MENA. Shortly thereafter, GBG, purchased a 50% interest in Iconix
MENA for $18.8 million to assist the Company in developing, exploiting, marketing
and licensing the Company’s brands in the MENA Territory.
Iconix Middle East has licensed many brands including Cannon, Ecko Unltd., Fieldcrest,
Starter, Umbro, Waverly and a substantial direct-to-retail license with Landmark
Group for Lee Cooper.
Other:
Diamond Icon, LLC
In March 2013, the Company, via Iconix Luxembourg Holdings SARL, entered into
a joint venture agreement with Albion Agencies Ltd, an English limited company,
in which the Company purchased a 51% interest in Diamond Icon Ltd, also an English
limited company. Diamond Icon was established to design, develop and facilitate
the supply of apparel, footwear and sports equipment for the Umbro brand; a
service the wholesale licensees depended on that was previously provided by
the former owner, Nike. The apparel, footwear and accessories developed by Diamond
Icon for Umbro are distributed by wholesale licensees of the Umbro brand around
the world.
Bright Star
Bright Star provided design direction and arranges for the manufacturing and
distribution of men’s private label footwear products primarily for Wal-Mart
under its private labels. Bright Star acted solely as an agent and never assumed
ownership of the goods. For each of the years ended December 31, 2014 and 2013
Bright Star’s agency commissions represented less than 1% of the Company’s
revenues. As of December 31, 2014 this company ceased operations.
Investments:
Marcy Media Holdings, LLC
In July 2013, the Company purchased a minority interest in Marcy Media Holdings,
LLC (“MM Holdings”), resulting in the Company’s indirect ownership
of a 5% interest in Roc Nation, LLC. Founded in 2008, Roc Nation is a full-service
entertainment company. Roc Nation Sports, a division of Roc Nation, launched
in Spring 2013 and focuses on elevating premier professional athletes’
career on and off the field by executing marketing and endorsement deals, community
outreach, charitable tie-ins, media relations and brand strategy. Roc Nation
entertainment and talent agency represents Kevin Durant, Robinson Cano and many
other influential athletes and artists.
Complex Media Inc.
In September 2013, the Company purchased convertible preferred shares, representing
on an as-converted basis as of December 31, 2014, an approximate 14.4% minority
interest in Complex Media Inc. (“Complex Media”), a multi-media
lifestyle company which, among other things, owns Complex magazine and its online
counterpart, Complex.com. In September 2015, Hearst Communications, Inc. acquired
a minority stake in Complex Media effectively reducing the Company’s ownership
interest to 11.8%. Complex Media is one of the leading multi-media platforms
for influential young male consumers focusing its content on style, music, sneakers,
sports, games, gear and girls. At the center of the Complex Media platform in
its flagship site- Complex.com- a consumer portal into the complex lifestyle
of young men.
Licensing Strategy
The Company’s business strategy is to maximize the value of its brands
by entering into strategic license agreements with best-in-class licensees that
are responsible for designing, manufacturing and distributing the licensed products.
Through our licensing business model, we have substantially eliminated inventory
risk and reduced the operating exposure associated with traditional fully vertically
integrated businesses, thereby resulting in attractive cash flows and operating
margins.