17555 Tue, 12/22/2009 - 1:15pm
NEW YORK-Iconix has reached an agreement with The Licensing Co., a London-based licensing agency, through which it has formed a new subsidiary, Iconix Europe.
According to a joint statement, the new unit will develop and expand the Iconix portfolio brands in Europe. As part of the agreement, an investment group led by The Licensing Co. and Albion Equity Partners have acquired a 50 percent interest in Iconix Europe for $4 million, with Iconix retaining the other 50 percent and the right to the first $6 million in distributions. Iconix and the investment group will split 50-50 distributions more than $6 million, the statement said.
The business model for Iconix Europe will be similar to the Iconix strategy of signing traditional and direct-to-retail licensing agreements for Iconix’s brand portfolio. In the home-furnishings category, Iconix’s licenses include Cannon, Charisma, Fieldcrest, Royal Velvet and Waverly. This is the third international partnership for Iconix, which has also allied with Novel Fashions in China and The Falic Group in Latin America.