Iconix Share Price Falls On SEC Investigation

Iconix Brand Group’s stock tumbled early Monday morning after the company reported that it is under investigation by the Securities & Exchange Commission.

The company had previously announced that it was under investigation by the SEC for the accounting and reporting of the formation of “certain joint ventures.” Today’s announcement comes as the formal investigation order was sent to Iconix, though it is unclear if this investigation expands on the scope of the initial one.

According to a release by Iconix, the company plans to “fully cooperate with SEC” and has already been in a “letter comment” period with the Commission.

2015 has been a difficult year for the brand-management firm, which owns fashion brands Badgley Mischka, Candie’s and London Fog and manages their licenses and brand extensions.

CEO, chairman and founder Neil Cole resigned in August, while two other top executives — COO Seth Horowitz and CFO Jeff Lupinacci — departed in the spring.

The firm also re-reported its financial statements for fiscal year 2013 and 2013’s fourth quarter, the fiscal year 2014 and each quarter of 2014 and the first two quarters of 2015. The firm filed the amended statements at the end of November.

At market open, Iconix’s shares slipped over 10 percent, to $6.66, and continued to fall in early trading. They were $33 at the start of January 2015.

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