NexCen Restructures, Platt Duties Expanded
Clint Engel -- Furniture Today, June 9, 2008
Moving quickly to cut overhead and right its cash flow, NexCen Brands entered June with a pared-down headquarters staff, consolidated executive responsibilities and with an investment bank retained to chart a financial strategy.
NexCen said it has eliminated about 25% of its New York staff, largely organizational and administrative positions that do not directly contribute to the company's business with franchisees, licensees and business partners. Reductions in payroll and salary deferrals are expected to save approximately $3 million annually, the company reported. It expects additional expense savings going forward.
As part of the new organizational structure, Rick Platt, president of NexCen Home Studios, encompassing the Waverly, Bill Blass Home and Gramercy brands, will add to his responsibilities the full Bill Blass business, including apparel and accessories.
Chris Dull, president of NexCen franchise management, will continue to oversee the franchise business. Charles Zona will step down from his position as evp of licensing but will remain with the company for a transition period.
"These actions streamline the company and allow us to operate more cost-effectively. We will remain committed to providing our franchisees, licensees and business partners with the highest level of service," said Robert D'Loren, ceo of NexCen Brands.
The company said it has engaged investment bank N M Rothschild & Sons Limited to explore strategic alternatives, including the possible sale of pieces of its franchising or licensing businesses.
NexCen is holding "active discussions" with its lender regarding possible amendments to the bank credit facility that has hampered its cash flow. The company is also in talks with other potential lenders regarding additional financing.
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