News: Hip-Hop Designer Marc Ecko Forced To Sell Brand To Pay Off Creditors
Wednesday, Oct 28, 2009 2:20PM
Hip-Hop clothing designer Marc Ecko's financial issues have officially caught up with him with new reports confirming that he has been forced to give up his clothing trademark.
Details on the designer's loss landed online today (October 28).
Ecko was forced to sell off a controlling stake in Ecko, middle America's most familiar hip-pop fashion line in order to raise cash to pay off creditors. It'll help the feeble brand hobble on, but it won't be his. (Gawker)
He has also discussed his highly publicized battle with creditors.
"I've had a crazy, wild ride," Ecko explained in an interview. "I've done a lot of things that have been naive. I'll take my lumps for a lot of things that, in retrospect, were a little indulgent. Life happens. I don't regret any of it...I've lived through a leveraged position. I don't know whether, once you grow up your business like that, you have full control anymore anyway. Reports of my demise have been reported often and early." (New York Post)
Marc Ecko's financial records recently emerged showing his company is nearly $200 million in debt.
Ecko has hired investment bank Peter J. Solomon to help refinance at least $170 million in debt. The debts are owed to a couple of important business partners. If he can't find a willing lender, Ecko may have to sell off some assets. Like many fashion outfits, the Marc Ecko brand took a hit during the past retail season. Sources say the company owes more than $100 million to Li & Fung, a global trading company that helps manufacture Marc Ecko products. He also also defaulted on a term loan of more than $70 million from a syndicate led by commercial-lending giant CIT and although he won forbearance on the loan, CIT will have to be paid by summer. (Luxist)
Rick Ross previously cited 50 Cent as a fashion liability to Marc Ecko's clothing empire, which originally produced the G-Unit apparel line.
"The music ended his career," Ross explained. "The way he dress ended his career. He almost put Marc Ecko outta business. He f*cked Vivica Fox and ended her career as an actress. It's the truth, it's the truth. We just coming to make hot records, you know what I'm saying? That's how you kill the haters, you continue to be successful, you stay focused. That's what it is, I stay focused, grounded. I never forget the small people. I always go back to my community, you know what I mean? And they embrace it and to me, that's what's important. (Lunetz TV)
Check out a recent Marc Ecko interview below:
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