In an SEC filing this month, Iconix said it was considering “strategic alternatives” for its business, including a sale. The news wasn’t a huge shock, the company has struggled in recent years, but it did serve to once again bring the brand management model into the spotlight.

By one count, U.S. store closures this year will more than double last year’s. That’s put particular pressure on mid-range apparel brands fighting each other for shelf space and consumer mindshare. As a near-Darwinian struggle takes place among apparel labels in the current, transformational retail marketplace, brand management firms like Iconix, PVH and Authentic Brands Group (which are some of the largest licensors in the world) are each responding in their own way.

Iconix
Iconix owns, markets and licenses a number of apparel brands including Starter, Umbro, Rocawear, Joe Boxer, London Fog and Material Girl, plus home brands such Waverly, Fieldcrest and Cannon. The company has been on the ropes for a while; it spent four years under an SEC fraud investigation that saw three top executives depart (two were charged with crimes in December), and the company itself reach a settlement with the Commission. In addition to selling, other options being considered include a merger, recapitalization, selling equity and equity-linked securities or selling individual brand properties. Iconix also recently agreed to sell the rights to the Umbro and Starter brands in China.

PVH
Also last week, PVH (owner of Calvin Klein and Tommy Hilfiger, among others) said it will close its 162 Izod, Van Heusen and Warner’s stores, and lay off 12% of its corporate workforce. The move might be preemptive rather than prescriptive. As early as July 1, one analyst said the company has “great value” for investors willing to look beyond short-term dips, thanks to its positive cash flow and history of profit growth.

Authentic Brands Group
ABG meanwhile seems to be making its version of the brand management model work. It’s bought up a wide range of brands in recent years – from Sports Illustrated to Nine West – and is currently in the midst of a  long run of acquisitions of well-known retail nameplates such as Aeropostale (2016), Barney’s (2019) and Forever 21 (February), agreed to buy assets of Lucky Brand (earlier this month) and in the past couple of weeks has been widely reported to be in talks regarding bankrupt JCPenney and Brooks Brothers. In most cases, ABG has been working with major mall developers – most often Simon Properties – for these acquisitions, another differentiating tactic.

The end of this story is not yet written (which makes it a bit hard to write a conclusion to this article), but suffice it to say that we’ll be watching as each of these major licensors take different tacks to combat the various pressures facing apparel retail at the moment.