SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 5.02.
Appointment of New Chief Executive Officer
On March 16, 2017, the Board of Directors (the “Board”) of Sequential Brands Group, Inc. (the “Company”) appointed Ms. Karen Murray, 60, to the position of Chief Executive Officer and director effective April 3, 2017. Prior to joining Sequential, Ms. Murray was the President of VF Sportswear, a wholly owned subsidiary of VF Corporation, one of the world’s largest apparel makers. At VF Sportswear, Ms. Murray oversaw the $1.2 billion global brand, Nautica, as well as Kipling. She joined VF Sportswear in 2007 as President of its Nautica Men’s Sportswear and Nautica Jeans Company businesses and the following year, she was appointed President of VF Sportswear. Ms. Murray began her career at Gant, where she remained for nine years before transitioning to Liz Claiborne. She assumed many different roles throughout her tenure at Claiborne, including President from 1998 to 2007.
Predecessor Chief Executive Officer
Ms. Murray will succeed Mr. Yehuda Shmidman, who ceased to be Chief Executive Officer and director on March 16, 2017. In accordance with Mr. Shmidman’s employment agreement, effective March 16, 2017, Mr. Shmidman became entitled to receive, among other things, (i) an amount equal to 2.0 times the sum of (x) his Base Salary of $600,000 and (y) the greater of (i) his actual Annual Bonus for 2016 or (ii) 150% of his Base Salary and (ii) any benefits to which Mr. Shmidman may be entitled under employee benefit plans. In addition, the unvested portions of Mr. Shmidman’s restricted stock awards and restricted stock units granted in 2015, representing 266,667 shares of common stock, accelerated and became fully vested on March 16, 2017. Mr. Shmidman has agreed to act as a consultant to the Company through March 31, 2017, for which he will receive an amount equal to his base salary for the period from March 16, 2017 through March 31, 2017. As a condition to payment of such amounts, Mr. Shmidman executed a release of claims against the Company and its affiliates substantially in the form attached to his employment agreement.
About SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG)
Sequential Brands Group, Inc. owns a portfolio of consumer brands in the fashion, home, athletic and lifestyle categories. The Company’s portfolio of consumer brands includes Martha Stewart, Emeril Lagasse, Jessica Simpson, Joe’s Jeans, William Rast, Ellen Tracy, Revo, AND1 and Avia. The Company’s brands are licensed for a range of product categories, including apparel, footwear, eyewear, fashion accessories and home goods. The Company licenses brands to both wholesale and direct-to-retail licensees. The Company licenses the Martha Stewart brand to various licensees, including retailers, such as Macy’s, The Home Depot, PetSmart and Staples. The Jessica Simpson Collection is a signature lifestyle concept designed in collaboration with Jessica Simpson, which offers various product categories, including footwear, apparel, fragrance, fashion accessories, maternity apparel, girls clothing and a home line. The Avia brand offers running and activewear products. SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) Recent Trading Information
SEQUENTIAL BRANDS GROUP, INC. (NASDAQ:SQBG) closed its last trading session down -0.24 at 3.51 with shares trading hands.