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Iconix completes Starter China sale

Starter China

U.S. company Iconix confirmed in a regulatory on Friday that it has completed the sale of its Starter China Limited subsidiary for US$16 million.

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The New York-based brand management firm’s sale includes the sale of the Starter brand across China, Hong Kong, Taiwan and Macua. The new owner is yet to be disclosed.

With the Starter China sale first announced in June of this year, Iconix said would use the net proceeds from sale to repay amounts due under its existing financing arrangements and for general corporate purposes.

News of the deal comes after Iconix’s announcement of the sale of Umbro China in April of this year. The Umbro China sale will see the brand’s Chinese operations go to HK Qiaodan for US$62.5 million.

More recently in July, the American company said that it is also examining a range of strategic alternatives, including a potential sale or merger. The company at the time said its management has received authorization from the board to explore options; ranging from a possible sale or merger, to debt and equity financings.

The company will continue to work with financial adviser Ducera Partners, as well as its legal counsel, Dechert, to make its strategic review, it said.

In its most recent trading update, Iconix reported total revenues of $22.3 million for the second quarter ended 30th June, 2020, down 35% compared to the same period in the previous year.

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The group’s quarterly net loss was $17.4 million, or $1.46 per share, compared to net income of $1.3 million, or $0.12 per share, in the prior year period. In addition to Starter China and Umbro, Iconix’s current portfolio includes Lee Cooper and Ecko Unltd.