Iconix to call off Playboy acquisition talks
17 Dec 2009
Leisure and fashion footwear and handbags brand Iconix Brand Group Inc is in the process of calling of talks to acquire Playboy Enterprises Inc after finding it would be too complicated to separate the Playboy brand from other assets of the company according to two sources familiar with the matter.
The adult-content producer and magazine publisher has been talking to two potential buyers and recently Iconix, had emerged as the lead bidder in a deal that was expected to gross in excess of $300 million.
The final decision to sell the publicly traded Playboy, which has been struggling for several years, came down to Hefner with his control over 70 per cent of the voting stock.
Iconix's main interests lay in the Playboy brand name, which it hoped to license for consumer products and location-based entertainment.
The main sticking point was the role that Hefner would play. Though he is not involved in day-to-day management he is Playboy's public figurehead and serves as chief creative officer and editor in chief of the magazine.
Iconix, which owns the London Fog and Danskin brands, had plans to divest the brand shut down or find partners for Playboy units, according the sources. According another source the situation remains fluid and may be resolved soon.
