Marc Ecko In Financial Troubles

by Upscale Swagger on March 28, 2009

marc-ecko-in-debt

Marc Ecko is really struggling through this economic downfall. His financial records have come forth stating his company is nearly $200 million in debt.

In an attempt to begin re-payment on two loans, Ecko has reportedly resorted to refinancing officials.

Ecko has hired investment bank Peter J. Solomon to help refinance at least $170 million in debt. The debts are owed to a couple of important business partners. If he can’t find a willing lender, Ecko may have to sell off some assets. Like many fashion outfits, the Marc Ecko brand took a hit during the past retail season. Sources say the company owes more than $100 million to Li & Fung, a global trading company that helps manufacture Marc Ecko products. He also also defaulted on a term loan of more than $70 million from a syndicate led by commercial-lending giant CIT and although he won forbearance on the loan, CIT will have to be paid by summer. (Luxist)

An Ecko rep has confirmed the allegations and weighed in on the designer’s plans of action.

“We’re pretty confident that this isn’t an issue that’s life-threatening at all,” Michael Golden, chief marketing officer at Marc Ecko Enterprises, said. “In our case, we have more than enough assets to pay off that term loan, and we have more than enough time.” Golden characterizes the $100 million due to Li & Fung as “normal trade payables” that fluctuate with seasonal inventory. And while he admits that “some businesses are doing better than others,” Golden noted strength in the company’s licensing and international units. (New York Post)

Via SOHH









{ 4 comments… read them below or add one }

Upscale Swagger March 29, 2009 at 6:14 pm

Who would ever known he was in so much debt.

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In DC March 30, 2009 at 12:14 am

So maybe this is why people like myself who paid for a year subscription to Complex never received any issues, even though we paid for them and the mag is still in operation.

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Peter Charles April 6, 2009 at 3:48 pm

If he can’t pay the debt, he’ll just sell off the Ecko brand. Trust me, a “big-box” retailer like Wal-Mart or Target would kill to have Ecko on their racks.

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Kevin Garcia September 15, 2010 at 12:48 am

Yo ive been an loyal ECKO fan since 98 im 23 now and i still rock it and im known for it Marc would never sell that Brand he’s got to many REAL fans like me who you support it anyway possible…and im a vip host at a mega club in vegas so so stay true 72

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