Iconix Receives Formal Letter of Investigation From the SECby
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.