Fashion goods marketer Iconix Brand Group has sold the rights to the Badgley Mischka IP to Titan Industries, which has bought it in partnership with the brand's founders and the apparel licensee MJCLK LLC for $16 million in cash.

Iconix acquired the Badgley Mischka IP in 2004, and the company has decided to sell the brand since the time and resources required to properly support it are not in line with the rest of the Iconix portfolio.

“Iconix has a portfolio of over 30 brands, and the company is focused on those brands that generate significant volume through both direct-to-retail relationships and global networks,” it said in a press release.

While Iconix expects to record a gain related to this sale in the first quarter of 2016, this transaction is not reflected in the company's current guidance.

The company will provide updated guidance for 2016, when it reports its fourth quarter and full year 2015 financial results.

"We have had a productive 11 years working with the Iconix team to build Badgley Mischka from its red carpet origins to a full lifestyle luxury brand," said Mark Badgley, co-founder of the label.

"We are excited to manage our core product categories in-house and focus on the luxury aspect in both product and image," he added.

"We intend to capitalise on the strength of our women's couture and RTW collections, and especially the success of the shoe collections, to further this partnership with Titan,” another co-founder James Mischka too said.

Peter Cuneo, chairman said, "As part of the comprehensive review that we have been conducting, we have been evaluating each brand in the portfolio and have been identifying where our time and resources are best spent.”

“Badgley Mischka is a strong brand, and we believe it is in good hands with Mark, James, and Titan,” Cuneo informed.

“However, we felt that it was in the best interest of our Company to divest this non-core asset and allocate our resources to our larger volume, higher margin brands,” he stated.

"I am thrilled to be partnering with the founders, Mark and James, and allowing them to regain ownership in their namesake brand," Joe Ouaknine, co-founder of Titan also said. (AR)