While reporting lower losses, the Sequential Brands Group, whose brand portfolio includes And1 and Avia, warned that it will not be able to comply with some of its debt covenants for the next 12 months. It is still negotiating an extension of a new waiver on a credit agreement expiring on April 19, while continuing to evaluate strategic alternatives including the sale of the company.

Sequential ended its financial year on Dec. 31 with $15.5 million in cash, but has been paying high interest rates on a long-term debt of $434.5 million. In the fourth quarter, its net losses from continuing operations declined to $4,460,000 from $10,779,000 in the year-earlier period, and adjusted Ebitda grew to $13,151,000 from $8,035,000, thanks in part to savings of $3.7 million in operating expenses. Revenues from its numerous licenses declined by 4.1 percent to $22.9 million, due to the pandemic. For the full financial year, revenues were down by 12 percent to $85.6 million. Adjusted Ebitda rose to $56,860,000 from $45,783,000, but impairment changes led to a net loss of $89,420,000 against a loss of $159,403,000 in 2019.