Iconix Brand Group Inc., which has been corresponding with the U.S. Securities and Exchange Commission about its accounting treatment for some joint ventures, has now received a formal order of investigation from the agency.
The company, which sells apparel brands such as Candie’s, Joe Boxer and Mossimo, said Monday in a statement that it plans to fully cooperate with the SEC.
The continued accounting issues threaten to further weigh on Iconix’s shares, which plunged 57 percent on Nov. 6 after the company said it would restate some financial statements from 2013 through this year. That restatement dealt with the way the New York-based company classified some expenses and how it recognized revenue related to licensing agreements.
Iconix fell as much as 19 percent to $6.02 in New York. The shares already had tumbled 78 percent this year through Dec. 24.