Iconix Brand Group (ICON) Stock Is Rocketing On Potential Takeover

Iconix Brands ICON Stock News

Iconix Brand Group Inc (NASDAQ: ICON) is making a run for the top, trading on gains of more than 100%. The gains come after the company announced that it is looking for strategic alternatives, including the potential sale of the company. Here’s what’s going on:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

ICON Stock Rockets On Potential Sale

In a recent announcement, Iconix Brand Group said that it is considering selling itself or moving forwardwith a merger transaction. The news comes as the company’s financial picture worsens.

The company is looking at several strategic alternatives to stay afloat given the difficult times. These potential options include the sale or merger of the company, debt and equity financing, and other alternative transactions.

ICON is known for licensing across fashion and sports as well as selling its own consumer brands. Some of the companies most successful brands include Candie’s and Ed Hardy.

Unfortunately, the company has been dealing with big financial issues. Recently, the company has been shedding assets in an attempt to raise cash, most recently selling Starter China in a deal for around $16 million.

In the announcement, ICON said that it has retained Ducera Partners as its financial advisor as well as Dechert for leal counsel. It’s importnat to keep in mind that the plans to seek alternatives will not stop the agreements to sell the rights to the Umbro and Starter brands.

This Is Big News

COVID-19 has been a painful event for Iconic Brands, as it has been for many in the retail sector. Unfortunately, for smaller brands, events with big economic impacts like this one, can lead to more painful realities.

Nonetheless, this is great news for investors that got in at the bottom of the recent decline. After all, larger brands can now acquire the company at a discount, which will likely lead to compelling demand for an acquisition. So, we could see a very big deal relatively soon, making ICON a stock that’s well worth keeping an eye on.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story

Join our free mailing list below to receive real-time news alerts!

Subscribe Today!

* indicates required

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.