Prior to ThreeSixty Brands, he served as CEO and board member of True Religion, a global lifestyle brand with over 2,000 employees and 180 retail stores.
I look forward to leading this company during this period of transformation.”Īs CEO of ThreeSixty Brands, Conn developed a go-to-market strategy for the FAO Schwarz brand that featured scaled distribution with major retailers and a direct-to-consumer rollout including an experiential, award-winning, FAO Schwarz NYC flagship store, and an e-commerce platform. My career has been focused around building and revitalizing brands and I’m excited about the potential of Sequential’s portfolio. Sweedler added, “I also want to thank President Chad Wagenheim for his leadership during this transition period and look forward to Chad continuing in his role as he now partners with David to drive the business forward.”Ĭonn said, “I’m thrilled to join Sequential Brands Group. He brings with him a wealth of knowledge in the retail sector and strong industry relationships, which will be invaluable to Sequential as we embark on this next chapter.” William Sweedler, Chairman of the Board said, “David Conn is an innovative, strategic, and entrepreneurial executive with an established track record of building and transforming businesses with strong global consumer brands. Most recently, he served as CEO of ThreeSixty Brands, where he played a significant role in acquiring and relaunching the FAO Schwarz and Sharper Image brands. announced that brand executive David Conn has been appointed Director and Chief Executive Officer of the company. Conn brings with him over 25 years of experience in brand management and marketing. The litigation will be led by Sarah Heaton Concannon.Sequential Brands Group, Inc. The SEC's investigation, which continues, was conducted by Ellen F. The SEC is seeking a final judgment ordering injunctive relief and civil monetary penalties.
The complaint, filed in federal district court in Manhattan, charges Sequential with violating the antifraud provisions of Section 17(a)(3) of the Securities Act of 1933, and, additionally, charges Sequential with violations of the reporting, books and records, and internal controls provisions of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder.
Sequential allegedly continued to improperly account for goodwill in the next three quarters, before belatedly impairing all of its goodwill-totaling $304 million-in the fourth quarter of 2017.
As alleged, by avoiding an impairment to its goodwill in 2016, Sequential inflated its income from operations, created a false impression of its financial condition, and misstated its financial statements and reports for almost a year. Instead, the complaint alleges, Sequential performed a qualitative analysis that omitted any mention of its internal calculations, as well as numerous other negative developments in the company's business, leading it to unreasonably conclude that goodwill was not impaired. The complaint alleges that the company ignored this objective evidence of impairment. According to the complaint, in December 2016, shortly after Sequential passed its annual goodwill testing, the company conducted internal calculations showing that, in light of the declining stock price, Sequential would fail the first step of its disclosed two-step impairment test. The SEC's complaint alleges that Sequential failed to properly assess its goodwill for potential impairment after several months of declining stock prices followed by a precipitous drop in early November 2016. with failing to impair its goodwill as required by accounting principles and the federal securities laws. Washington D.C., DecemThe Securities and Exchange Commission today charged New York-based brand-management company Sequential Brands Group, Inc.
0 kommentar(er)
