Shares in the Iconix Brand Group took a nosedive on Monday, after the company announced that it received a formal order of investigation from the Securities and Exchange Commission (SEC). Iconix, the parent company of Umbro, Starter, Danskin and a string of other brands, added that it intended to fully cooperate with the SEC. Iconix previously acknowledged that it was in a “comment letter process” with the SEC, regarding the accounting methods for the formation of certain joint ventures. It formed a special committee of the board of directors to conduct a review, along with its independent legal and accounting advisers. In November, Iconix said it would file restatements of financial statements from the fourth quarter of fiscal 2013 until the second quarter of 2015, to correct certain errors in accounting, and it downgraded its guidance for the full year 2015. Iconix shares have already been under intense pressure this year, which saw the departure of Neil Coles, the group's chairman, president and chief executive, in August. Peter Cuneo, one of the company's board members, was appointed chairman and interim chief executive. Iconix says it's in active discussions with potential lenders and still expects that it will manage to refinance its 2016 convertible notes.

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