1/12/2024 0 Comments Sequential brands group![]() ![]() The disclosed goodwill impairment testing policy stated that Sequential considered its market capitalization to represent estimated fair value.Īccording to the SEC, Sequential ignored the objective evidence of its internal calculations, instead performing a “strained, biased, and outcome-driven qualitative analysis” that “unreasonably concluded that goodwill was not impaired” by the stock price decline. Its intangible assets, including goodwill, “constituted the overwhelming majority of the company’s assets” and its stock price was “a particularly important consideration” in its goodwill impairment testing, the SEC noted. Sequential owns and manages retail brands including Jessica Simpson, Joe’s Jeans, And 1, Avia, Ellen Tracy, and Caribbean Joe. Hodgman, an associate director in the SEC’s Division of Enforcement, said in a news release. “We allege that Sequential ignored clear evidence of goodwill impairment, and thereby delayed alerting investors to its declining economic prospects,” Melissa R. While the commission did not name those individuals, company records show Gary Klein was appointed CFO in 2012 and was replaced on an interim basis by Andrew Cooper in 2017. Sequential avoided the goodwill impairment through “the acts and omissions of its senior accounting and finance personnel,” including its then-CFO, its president and interim CFO, and its vice president of finance, the SEC said in a civil complaint. The company allegedly carried the deception forward for three more quarters until it finally impaired all of its goodwill - totaling $304 million - in the fourth quarter of 2017. ![]() Securities and Exchange Commission said Sequential began improperly accounting for goodwill in the fourth quarter of 2016, turning a net loss into a profit, after conducting internal fair value calculations that showed it would fail the first step of its disclosed two-step impairment test. Revo is the fourth brand to be added to Sequential’s portfolio in 2013 and the seventh overall.Brand management company Sequential Brands has been charged with ignoring “clear evidence” of goodwill impairment to create a false impression of financial health while its stock price was falling. “We are excited to be partnering with Sequential Brands Group to help further develop the core eyewear technology and expand the business.” “Revo is a powerful brand and has tremendous potential to expand its customer base,” stated Cliff Robinson, President of B. As we combine this product strategy with our soon-to-be-announced marketing strategy, we are confident Revo will resonate with both existing and new consumers.” “We are also excited to introduce new product categories that we believe are a perfect fit for the Revo brand, and we will be pursuing new partnerships to execute on this vision. Robinson, we are committed to preserving the DNA of the Revo brand in its core category of eyewear.” “We are thrilled to add Revo to Sequential’s brand portfolio,” commented Yehuda Shmidman, Chief Executive Officer of Sequential Brands Group. In addition, Sequential signed a long-term partnership agreement with Sunglass Hut to continue distribution of Revo at Sunglass Hut stores globally. Robinson, a leading eyewear company, to manufacture and distribute Revo sunglasses and related products. In connection with the acquisition, the Company signed a long-term license agreement with B. announced today that it has acquired the Revo brand, including all of the related intellectual property and certain other assets, from Oakley Inc., a company belonging to the Luxottica Group, for a gross purchase price of approximately $20 million in cash. Revo purchased for $20m with hopes of expanding ![]() Sequential Brands Group acquires Revo from Oakley Sequential Brands Group acquires Revo from Oakley
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