By Lauren Coleman-Lochner - Sep 17, 2010 3:42 PM ET Fri Sep 17 19:42:19 GMT 201
Designer Kenneth Cole is in talks to sell the shoe and clothing company he founded to Iconix Brand Group Inc., the licensing company run by his brother Neil Cole, according to two people with knowledge of the matter.
The timing for a takeover of Kenneth Cole Productions Inc. isn’t clear, and the companies may not reach an agreement, said the people, who declined to be identified because the discussions are private.
Iconix owns brands such as Candie’s and London Fog, and licenses them to retailers and manufacturers. In addition to owning the Kenneth Cole brand, Kenneth Cole Productions operates 110 stores, based on its last annual report.
Kenneth Cole Productions, based in New York, has posted back-to-back annual losses as U.S. consumers curbed spending. In May, Chairman Kenneth Cole said he would explore “all strategic avenues” that boost shareholder value. The stock has lost about half its value in the past five years.
Iconix Chairman and Chief Executive Officer Neil Cole declined to comment to Bloomberg at a Sept. 15 conference in New York. A Kenneth Cole spokesman couldn’t immediately comment.
To contact the reporter on this story: Lauren Coleman-Lochner in New York at firstname.lastname@example.org