Marc Ecko Forced to Sell Clothing Brand
"I'll take my lumps for a lot of things that, in retrospect, were a little indulgent. Life happens. I don't regret any of it."
A lifestyle of lavish spending takes its toll overtime as a person has to dig deeper into their pockets to find cash. After awhile, a person will pull out empty pockets as popular Hip-Hop clothing line businessman Marc Ecko had been forced to give up his enterprise.
Initial reports came in September and were made official Tuesday when Ecko signed over a 51 percent interest in the Marc Ecko brand to Iconix. This brand is a New York-based company that owns many popular fashion brands such as Joe Boxer, Candie's, Rocawear and London Fog.
The exchange with Iconix will see Ecko receiving 63.5 million in cash plus $90 million in financing for a newly formed joint business venture. He will also maintain his position as chief creative officer.
Ecko must have been acting in desperation as he was forced to lay off workers and even auction his Avirex brand and his watch trademarks in order to avoid creditors from breathing down his neck. He is still going through struggles, however, as he is still attempting to lease out pieces of his headquarters in Midtown, which houses everything from a recording studio to a basketball court. The headquarters is 280,000- square-feet in size.
Speaking with the NYPost, Ecko stated that his move has not hurt him as most would think, but has instead given him a sense of relief.
"I've lived through a leveraged position. I don't know whether, once you grow up your business like that, you have full control anymore anyway."
The brand in itself might have been falling victim to a transition in fashion sense amongst the youth. Known for its baggy appearance and sporting logos, the youth has switched their style up as of late and Ecko might not have fit the mold of tomorrow. The sales for the brand dropped by $18 million last year, while being housed at Macy's. It is clearly evident that it might just be that time to let things go.
For every bad fall there is a greater opportunity and better avenue to follow and hopefully the deal for Ecko will ensure that he can rise back to the top.