Iconix Brand Group isn’t having such a happy holiday—the fashion and home brands group said Monday it received a formal order for investigation into its accounting practices from the Securities and Exchange Commission (SEC)—and shares fell 7 percent on the news.
The New York-based company, whose portfolio of brands includes Badgley Mischka, Joe Boxer, Mossimo and Zoo York, saw stocks plummet more than 23 percent to $5.70 in Monday afternoon trading.
Iconix had been under investigation by the SEC for irregular accounting practices related to certain joint ventures, and the company said in November it would restate previous financial reports dating back to 2013 and it formed a special committee to review its accounting.
Peter Cuneo, Iconix chairman and interim CEO, said in a statement at the time, “While we are disappointed in the restatement of our results and revision to our guidance, we believe the actions being taken will create a more solid foundation for Iconix and represent a positive step toward the future of the company.”
Based on the special committee’s review, Iconix said Monday it would restate its financial statements for fiscal 2013 and for the fourth quarter of that year, for fiscal 2014 and each quarter of the year, plus the first and second quarters of 2015.
“Iconix will continue to focus on building its brand management platform across the globe and is committed to driving the long term success of the company,” Iconix said in a statement. “The company is currently in active discussions with potential lenders and continues to expect to be in a position to refinance its 2016 convertible notes.”
The company’s shares have fallen 78 percent in the year, while the S&P has gained 0.1%, according to MarketWatch.