Companies Fighting Over Mossimo
A bidding war has erupted between two companies vying to buy Mossimo Inc., a brand of clothing sold at Target Corp. stores throughout the country.
New York–based Iconix Brand Group Inc. said on April 3 that it signed an acquisition agreement with Mossimo, headed by designer Mossimo Giannulli, for $119 million in cash and stock. Santa Monica, Calif.–based Mossimo would be added to Iconix’s other brands: Candie’s, Bongo, Rampage, Badgley Mischka and Joe Boxer. Iconix recently acquired the New York label Mudd.
Days after the Iconix offer, Cherokee Inc., the Van Nuys, Calif.–based firm that engineered selling Mossimo’s label to Target, on April 17 offered $135 million for Mossimo, even though Mossimo earned only $4.7 million on $31 million in revenues last year.
Sources close to Cherokee said they thought the Mossimo brand could reap a hefty profit in the future by being sold beyond the United States to markets in Europe and Asia. Cherokee owns the brands Cherokee, Carole Little and Sideout.
Mossimo’s board of directors met April 19 to weigh the bids. —Deborah Belgum
