NEW YORK–NexCen Brands Inc., parent to the Waverly and Bill Blass brands, said yesterday the company’s debt level has created “substantial doubt” regarding its ability to continue operations. The company also stated its 2007 financial statements should no longer be relied upon.
Seemingly another victim of tightening credit lines, NexCen is faced with an October due date for a sizable payment stemming from funds borrowed to help finance the acquisition of the Great American Cookie business earlier this year.
The company stated it is “actively exploring all strategic alternatives to enhance its liquidity.” Those options include potential capital market transactions, the possible sale of one or more of its businesses and discussions with the company’s lender.
In addition to the aforementioned brands, NexCen owns and licenses seven franchised brands, including The Athlete’s Foot and Pretzel Time.