Wednesday, July 29, 2009
Marc Ecko Low on Cash Flow
The large bronze rhinoceros statues grazing inside hip-hop clothing designer Marc Ecko's massive 275,000 square foot headquarters on West 23rd Street may soon be out of a home. The entire space, which costs more than $9 million a year and includes a half-size basketball court, is now on the market. The clock is ticking for Mr. Ecko, who is desperately trying to raise enough capital to pay off Marc Ecko Enterprises' debts. In June, Ecko sold its watch trademarks to Timex Group and subsequently unloaded its Avirex young men's brand to Kids Headquarters.
Mr. Ecko is the latest casualty of the once-booming $4 billion urban wear business. The sector is morphing away from its baggy, logo-threaded beginnings into a cleaner, more mainstream look available at stores like Aéropostale and Abercrombie and Fitch. Add in the fact that the Ecko brand is not as “cool” as it once was and you have the potential for near financial disaster.