Iconix Brand Group undergoes investigation

American brand management company Iconix Brand Group is currently undergoing an investigation. The company received an order of investigation from the Securities and Exchange Commission on December 28.

Iconix Brand Group owns various labels including many California-based ones. Some of the company’s labels include London Fog, Rampage, Mossimo, Ed Hardy, Zoo York, Rocawear, Ecko Unltd and more. According to Apparel News, the SEC is investigating accounting done for joint ventures that took place in China and Latin America.

Since the investigation started on Dec. 28, stock for the company has decreased. On Dec. 29, the Iconix Brand Group’s stock had decreased by 20 percent, as reported by Apparel News. In cooperating with SEC so far, Iconix has spent 7.1 million dollars on professional fees. The brand management company will continue to comply with the SEC on all accounts, most likely due to negative impact the investigation has had so far on the company’s stock.