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FORMER ECKO UNLTD. LICENSEE IN BANKRUPTCY PROCEEDINGS: Former licensee of streetwear brand Ecko Unltd. filed a voluntary Chapter 11 petition for bankruptcy court protection on Wednesday in a bankruptcy court in Trenton. Court documents said it had $30 million in assets and $62 million in liabilities. The filing was done under the name MEE Apparel LLC, the operating company that is a licensee of IP Holdings Unltd. IP Holdings is a subsidiary of Iconix Brand Group, which owns the intellectual property of the Ecko brand.
In an affidavit by Jeffrey L. Gregg, the company’s chief restructuring officer, he said declining sales and reduced profitability since 2009 hurt the company. He also said the plan is to pursue an “expedited sale process” of the company’s assets.
Seth Gerszberg, who controls the company, cofounded the brand in 1993 along with Marc Ecko and Marci Tapper. In a separate court filing, Suchman LLC, an entity owned by Gerszberg, is the stalking-horse bidder, having offered $11.3 million as a “credit” to forgive part of the debtor’s debt plus the assumption of certain liabilities for the Ecko assets.