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)