Centric Brands Inc. (the “Company”) (NASDAQ:CTRC), a leading
lifestyle brands collective, announced today that on May 18, 2020,
it received notification from The Nasdaq Stock Market LLC
(“Nasdaq”), that due to the Company’s voluntary filing under
Chapter 11 of the U.S. Bankruptcy Code on May 18, 2020 (the
“Filing”), and in accordance with Nasdaq Listing Rule 5101, Nasdaq
has determined that the Company’s common stock will be delisted
from Nasdaq.
This expected determination is primarily based on the Filing and
associated public interest concerns raised by it. In addition, the
Company had not yet filed its Annual Report on Form 10-K for the
period ended December 31, 2019, and was not compliant with Listing
Rule 5250(c)(1).
Given the continued listing requirements of Nasdaq and the
Company’s intent to emerge from the pending Chapter 11 case as a
private entity, it does not plan to appeal the Nasdaq
determination. Accordingly, trading of the Company’s common stock
will be suspended at the opening of business on May 28, 2020, and a
Form 25-NSE will be filed with the Securities and Exchange
Commission, which will remove the Company’s common stock from
listing and registration on Nasdaq.
The Company expects that its common stock may be eligible to be
quoted on the OTC Pink Market operated by the OTC Markets Group
Inc. There can be no assurance that any public market for the
Company’s common stock will exist in the future, as quotes on the
OTC Pink Market are dependent upon the actions of third
parties.
About Centric Brands Inc.
Centric Brands Inc. (NASDAQ:CTRC) (the “Company”) is a leading
lifestyle brand collective that designs, sources, markets and sells
high quality products in multiple segments, including kids, men’s
and women’s apparel, accessories, beauty, and entertainment. The
Company’s portfolio includes licenses for more than 100 iconic
brands, including for kids apparel, Calvin Klein®, Tommy Hilfiger®,
Nautica®, Spyder® and Under Armour®; for men’s and women’s apparel,
Joe’s Jeans®, Buffalo®, Hudson Jeans®; for accessories, Kate
Spade®, Michael Kors®, All Saints®, Frye®, Timberland® and Jessica
Simpson®; and for entertainment, Disney®, Marvel®, Nickelodeon® and
Warner Brothers®, among others. Owned brands include Hudson®,
Robert Graham®, Swims®, Zac Posen® and Avirex®. The Company’s
products are sold primarily in North America through leading mass
market retailers, specialty, and department stores, and online.
Centric Brands has unparalleled expertise in product design,
development and sourcing, retail and digital commerce, marketing,
and brand building. The Company is headquartered in New York City
and has offices in White Plains, Los Angeles, Greensboro, N.C.,
Toronto, and Montreal. For more information about Centric Brands
please visit https://www.centricbrands.com.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, as amended, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The matters discussed
in this news release involve estimates, projections, goals,
forecasts, assumptions, risks and uncertainties that could cause
actual results or outcomes to differ materially from those
expressed in the forward-looking statements. All statements in this
news release that are not purely historical facts are
forward-looking statements, including statements containing the
words “may,” “will,” “expect,” “anticipate,” “intend,” “estimate,”
“continue,” “believe,” “plan,” “project,” “will be,” “will
continue,” “will likely result” or similar expressions. Any
forward-looking statement inherently involves risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to:
risks related to the impact of the voluntary filing for protection
under Chapter 11 of the U.S. Bankruptcy Code, including the
Company's ability to obtain Bankruptcy Court approval with respect
to motions in the Chapter 11 Case, the effects of the Chapter 11
Case on the Company and on the interests of various creditors,
stockholders and other constituents; Bankruptcy Court rulings in
the Chapter 11 Case and the outcome of the Chapter 11 Case in
general; the length of time the Company will operate under the
Chapter 11 Case; risks associated with third-party motions in the
Chapter 11 Case; the potential adverse effects of the Chapter 11
Case on the Company's liquidity or results of operations and
increased legal and other professional costs necessary to execute
the Company's reorganization; the conditions to which the Company's
debtor-in-possession financing is subject and the risk that these
conditions may not be satisfied for various reasons, including for
reasons outside of the Company's control; uncertainty associated
with evaluating and completing any strategic or financial
alternative as well as the Company's ability to implement and
realize any anticipated benefits associated with any alternative
that may be pursued; the consequences of the acceleration of our
debt obligations; the impact on the Company’s ability to trade on
the Nasdaq Stock Market or the OTC Bulletin Board or “Pink Sheets;”
the timing of its delisting and future trading, including its
impact on its stock price and future quotes; the assurance as to
whether or not any public market will exist for the Company’s
common stock; the ability of the Company to file its delinquent
filings in the prescribed time periods and its ability to meet the
continued listing requirements of the Nasdaq Stock Exchange or any
exchange that it will trade upon or SEC rules and regulations; the
ability to continue operating in the ordinary course and meets its
financial obligations risks related to the Company’s ability to
implement successfully any growth or strategic plans; risks related
to COVID-19’s impact on the economy and the Company’s cash flows as
a result of government mandated closures of our retail stores,
wholesale partners and disruptions in the supply and distribution
chain; the highly competitive nature of the Company’s business in
the United States and internationally and its dependence on
consumer spending patterns, which are influenced by numerous other
factors; the Company’s ability to respond to the business
environment and fashion trends; continued acceptance of the
Company’s brands in the marketplace; risks related to the Company’s
reliance on a small number of large customers; risks related to the
Company’s ability to manage the Company’s inventory effectively;
risks related to the Company’s ability to continue to have access
on favorable terms to sufficient sources of liquidity necessary to
fund ongoing cash requirements of the Company’s operations; risks
related to the Company’s pledge of all its tangible and intangible
assets as collateral under its financing agreements; risks related
to the Company’s ability to generate positive cash flow from
operations; and other risks. The Company discusses certain of these
factors more fully in its additional filings with the SEC,
including its annual report on Form 10-K for the fiscal year ended
December 31, 2018 and subsequent quarterly reports on Form 10-Q
filed with the SEC, and this release should be read in conjunction
with those reports, together with all of the Company’s other
filings, including current reports on Form 8-K, through the date of
this release. The Company urges you to consider all of these risks,
uncertainties and other factors carefully in evaluating the
forward-looking statements contained in this release.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
Since the Company operates in a rapidly changing environment, new
risk factors can arise and it is not possible for the Company’s
management to predict all such risk factors, nor can the Company’s
management assess the impact of all such risk factors on the
Company’s business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
The Company’s future results, performance or achievements could
differ materially from those expressed or implied in these
forward-looking statements. The Company does not undertake any
obligation to publicly revise these forward-looking statements to
reflect events or circumstances occurring after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20200522005436/en/
Media and Investors Edelman for Centric Brands Arielle
Patrick Arielle.Patrick@edelman.com
Hunter Stenback Hunter.Stenback@edelman.com
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