NEW YORK–Iconix Brands Group has reached an agreement with Hong Kong-based Novel Fashion Holdings for a joint-venture firm to sell Iconix products in China, Hong Kong, Taiwan and Macao.
Called Iconix China, the company will be based in Hong Kong and will be run by a board of directors comprised of executives from both Iconix and Novel Fashion. Iconix will contribute $5 million and substantially all of the rights to its brands for these territories, while Novel Fashion will contribute $20 million to the venture. Part of the Iconix brand offerings include Cannon, Royal Velvet, Fieldcrest and Charisma on the home textiles front.
“The strategy behind Iconix China will be to identify local operating companies with the potential to go public, and provide them with one of the Iconix brands, and marketing and brand management support, in exchange for an equity stake in their companies,” an Iconix statement said. “The joint-venture company will also potentially acquire interests in other Chinese or Asian brands.”
In the statement, Neil Cole, Iconix’s chairman and chief executive officer, said Iconix China has the potential to become larger than the company’s U.S. business.