TIDMSPD
Sports Direct International Plc
01 June 2018
Date: 1 June 2018
SPORTS DIRECT INTERNATIONAL PLC
SPORTS DIRECT NOMINATES FOUR DIRECTORS TO THE BOARD OF
ICONIX
- Iconix's Current Board has Overseen Drastic Drops in Company's
Share Price - With the Stock Currently Trading Below $0.70 - and an
Increasingly Unsustainable Debt Load, along with Alarming Losses of
Significant Licensing Agreements -
- Sports Direct's Four Highly-Qualified Nominees - Ron
McPherson, Howard Moher, Mark Hunter and Daniel Dienst - Possess
Extensive Operational Expertise and Industry Experience and Will
Help Reverse Trend of Underperformance and Value Destruction at
Iconix -
Sports Direct International plc ("Sports Direct"), one of the
United Kingdom's largest sports-goods retailers which holds 9% of
Iconix Brand Group, Inc. (Nasdaq: ICON) ("Iconix" or the
"Company"), today announced that it has nominated four
highly-qualified individuals - Ron McPherson, Howard Moher, Mark
Hunter and Daniel Dienst - for election to the Iconix Board of
Directors (the "Board") at the Company's 2018 Annual Meeting. This
is in line with Sports Direct's commitment to actively participate
in its strategic investments.
Sports Direct issued the following statement:
"As significant and long-term Iconix stockholders, we have seen
first-hand how the numerous operational and strategic decisions
initiated by the Company have resulted in severe value destruction
for its investors. The Company's stark drop in share price
(currently trading at under $0.70), substantial debt load relative
to revenues (with more than $800 million in outstanding principal
obligations as of Q1 2018) and the loss of major direct-to-retail
licensing agreements with major retailers all demonstrate the
failures of the current Board and management."
"Given these serious concerns, we have made a number of attempts
to engage constructively with Iconix, but this has unfortunately
led nowhere. We can no longer stand by while Iconix's Board and
management continue along this unsustainable path. We have
nominated four highly-qualified individuals for election as
directors. These nominees have an in-depth understanding of the
operational challenges facing the Company - three of the four are
seasoned executives affiliated with Sports Direct and all four of
our nominees are veterans of the retail and brand licensing
industries. We believe that reorganizing the Board with
highly-qualified experts is a critical first step to unlocking the
Company's latent value."
"Our nominees are fully committed to undertaking a strategic
evaluation of the current business and opportunities that exist
with the goal of driving significant value for all stockholders and
improving governance and transparency - which the incumbent Board
has failed to do over a number of years. Iconix's history of
underperformance and its lack of a coherent strategy to reverse
this recent unacceptable loss of stockholder value illustrates the
need for significant change at the Board level."
Sports Direct's nominees for Iconix's Board of Directors
are:
-- Ronald McPherson, President and CEO of The Antigua Group,
Inc., an affiliate of Sports Direct International plc. Mr.
McPherson has been an employee of Antigua for nearly four decades
as it has grown into a leading designer and marketer of men's,
women's and children's lifestyle apparel and sportswear. He has
also served as a board member for the Golf Manufacturers and
Distributors Association, and for The Samaritan Foundation/Banner
Health Foundation.
-- Howard Moher, CEO of SDI USA LLC, SDI Stores USA LLC,
Mountain Sports LLC and Bobs Stores USA LLC, ultimate subsidiaries
of Sports Direct International plc and operators of the Bobs Stores
and Eastern Mountain Sports retail and web businesses. Mr. Moher
took on the role of CEO after leading the successful transaction by
Sports Direct International plc to purchase the Bobs Stores and
Eastern Mountain Sports from Versa Capital in 2017. Under his
leadership, Mr. Moher is successfully managing their restructuring
and turnaround. Prior to taking on his role as CEO, Mr. Moher
worked in various capacities for Sports Direct International plc
for over a decade. He is also the Chairman of the Board of
Leisurewear International Ltd., owners of the Minoti brand. Mr.
Moher is a non-executive director of Technology Rentals Ltd, a
leading UK leaser of IT equipment to the education sector.
-- Mark Hunter, Acting CEO and CFO of Everlast Worldwide, Inc.,
an affiliate of Sport Direct International plc. Everlast is the
world's leading manufacturer, marketer and licensor of boxing, MMA
and fitness equipment. Prior to taking on this role in 2017, Mr.
Hunter served as Executive Vice President of Finance, Supply Chain,
Planning & Ecommerce at Everlast from 2012 to 2017. Mr. Hunter
is also an officer of both SDI Holdings USA Inc. and SDI Sports
Group America, Inc., affiliates of Sport Direct International
plc.
-- Daniel Dienst, founder and managing member of D2Quared LLC
and former director and CEO of Martha Stewart Living Omnimedia
Inc., where he led the turnaround of the famous brand and
orchestrated its successful sale in 2015 to Sequential Brands, Inc.
for $353 million. Mr. Dienst is a Director of Knoll, Inc. (NYSE:
KNL) and Matlin & Partners Acquisition Corporation (NASDAQ:
MPACU). He was the Group CEO of Sims Metal Management, Ltd., having
founded and served as the Chairman and CEO of Metal Management,
Inc. before the company was sold to Sims for $1.7 billion in 2008.
Mr. Dienst is experienced in the financial markets, having served
as a Managing Director of Corporate and Leveraged Finance at CIBC
World Markets Corp. He also was recently a Director of 1st Dibs,
Inc., a venture-backed e-commerce business, from 2014 to 2015.
About Sports Direct International plc:
Sports Direct is the UK's largest sporting goods retailer by
revenue, operating over 750 stores across the UK, continental
Europe and Asia. Additionally, Sports Direct operates Premium
Lifestyle and Brands divisions and owns a portfolio of over 30
globally recognized brands, including Slazenger, Everlast,
Lonsdale, Karrimor, No Fear and Kangol.
Additional Information
Sports Direct International plc, Ronald A. McPherson, Howard
Moher, Mark Hunter and Daniel W. Dienst (collectively, the
"Participants"), intend to file with the Securities and Exchange
Commission (the "SEC") a definitive proxy statement and
accompanying form of proxy card to be used in connection with the
solicitation of proxies from the stockholders of Iconix Brand
Group, Inc. (the "Company") in connection with the Company's 2018
annual meeting of stockholders. All stockholders of the Company are
advised to read the definitive proxy statement and other documents
related to the solicitation of proxies by the Participants when
they become available, as they will contain important information,
including additional information related to the Participants. When
completed, the definitive proxy statement and an accompanying proxy
card will be furnished to some or all of the Company's stockholders
and will be, along with other relevant documents, available at no
charge on the SEC's website at http://www.sec.gov/. As of June 1,
2018, the Participants were the beneficial owners of 5,664,115
shares of common stock, par value $0.001 per share, of the
Company.
Ends.
UK:
KBA PR T. 0207 734 9995
Keith Bishop E. sd@kbapr.com
US:
Sloane & Company T. +1 212 486 9500
Dan Zacchei / Joe Germani, E. dzacchei@sloanepr.com
jgermani@sloanepr.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NRAKMGGVDMVGRZM
(END) Dow Jones Newswires
June 01, 2018 10:58 ET (14:58 GMT)
Frasers (LSE:FRAS)
Historical Stock Chart
From Apr 2024 to May 2024
Frasers (LSE:FRAS)
Historical Stock Chart
From May 2023 to May 2024