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Sequential Brands Group, Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its FY2020 10-K, filed Apr 15, 2021. Its latest SEC filing is a 15-12B from Mar 9, 2022.

The sections below describe the company as of the FY2020 annual report.

What Did They Do?

Licenses consumer brands for apparel, footwear and home goods, with products sold through retailers, wholesalers and distributors.

How Did They Make Money?

The company earns guaranteed minimum royalties from brand partners over each license term, plus additional royalties tied to licensees’ product sales.

FY2016 revenue

Who Were Their Customers?

It licenses brands to wholesale partners that supply multiple accounts and to individual retailers that sell products through stores and e-commerce.

Customers above 10% of revenue, FY2020
of revenue from three customers (19%, 18%, 15%)

Did Revenues Turn Into Profits?

Not on paper. It lost $821K in FY2016, but brought in more cash than it spent: $39.7M of free cash flow.

Operating income, FY2016
45% of revenue
▲ +137% vs FY2015 ($29.7M, 34%)
Net income, FY2016
−1% of revenue
▼ −71% (Loss) vs FY2015 (−$2.9M, −3%)
Free cash flow, FY2016
26% of revenue
▲ Now profitable vs FY2015 (−$10.4M, −12%)

How Were They Changing?

Since the FY2020 annual report
  • Mar 9, 2022 Plan took effect and the company will liquidate The plan cancels common stock and other equity interests, with no distributions to holders.
  • Nov 18, 2021 Sold AND1, Avia, GAIAM and SPRI and its Jessica Simpson brand interest Both transactions closed on November 12, 2021.
  • Nov 12, 2021 Sold the Joe’s and William Rast brands Both transactions closed on November 9, 2021.

Grew. Revenue grew 6.9x in 3 years, from $22.7M in FY2013 to $155.5M in FY2016, about 90% a year.

Portfolio focus The earlier report describes brands in home, active and fashion categories, including Martha Stewart; the latest overview focuses on active and lifestyle brands after the company sold MSLO.

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