Marc Ecko To Lose Ownership Of Namesake Brand

Marc Ecko, designer, creator and CCO of the hip-hop megabrand Ecko, is in a pickle: drowning in debt, the entrepreneur recently defaulted on a term loan of over $70 million from commercial-lender CIT and he currently owes over $100 million to Li & Fung, a trading company which assists in the distribution of Ecko’s clothing.

The brand sold a number of licenses and brands this summer to ease tensions and debt with CIT, but remains tremendously indebted to Li & Fung. Consequently, Ecko finds himself in the unsavory position of either inevitably filing for bankruptcy or selling a majority of company.

For now, it seems as though he has opted for the latter option, and is currently in talks with Iconix, the brand group that owns major stakes in Badgley Mischka, Rocawear, Mossimo, Mudd, Rampage, Candie’s, among others, and recently acquired 50% of Ed Hardy.

According to sources, Iconix’s aim is to attain 51% of Ecko’s intellectual property, paying over half of Ecko’s debt to Li & Fung and absorbing the rest of Ecko’s debt. Ecko could breathe easier debt-free, but would lose his trademark to run his business.

Bummer!

[Image via AP Images.]