Waverly Owner NexCen in Trouble

Diversified brand management firm NexCen Brands, Inc., which owns and licenses the Bill Blass and Waverly brands, said on May 19 it "believes that there is substantial doubt about its ability to continue as a going concern."

NexCen has delayed filing its quarterly report and said "its 2007 financial statements should no longer be relied upon."

While nonetheless maintaining it expects no changes to its 2007 financial results, the board of directors has retained independent counsel to review its situation.

The actions follow the discovery by the new cfo (Kenneth Hall, who joined in mid-March as evp, cfo and treasurer) of previously undisclosed ramifications of January amendments to the NexCen bank credit facility.

The key fallout seems to be that the amendments "reduced the amount of cash available to the company for general use."

In March, the company reported a net loss of $4.6 million on revenues of $34.4 million for 2007, its first full year in business.

NexCen said it now is "actively exploring all strategic alternatives to enhance its liquidity, including potential capital market transactions, the possible sale of one or more of its businesses, and discussions with the company's lender."

As expected, the company on May 23 said it had received notice from Nasdaq that its stock was in jeopardy of being delisted from the exchange, a direct result of its not filing its 10-Q quarterly report on time. NexCen said it was "committed to resolving these issues as quickly as possible."

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!