stronghold

Marc Ecko Sells Control Over His Name, Will He Lose The Castle Too?

In the case of hip-hop clothing designer Marc Ecko, it's hard not to blame the real estate. The NY Posts reports that Ecko has been forced to give up control of his own trademark in a move to stave off a total meltdown. He signed over a 51 percent interest in the Marc Ecko brand to Iconix, a New York company that owns brands like Joe Boxer, Candie's, Rocawear and London Fog for $63.5 million in cash plus $90 million in financing for a newly formed joint venture.

Ecko's penchant for lavish spending led him to invest in some pretty pricey properties. He is currently trying to lease out space in his 280,000- square-foot headquarters in Midtown. The building includes everything from a recording studio to a basketball court. As Ecko told the Post, he's had "a crazy, wild ride." Part of that wild ride also includes his 30-acre estate in Bernardsville, New Jersey. The estate known as Stronghold was bought by Ecko and his wife, Allison for $7.4 million in 2005. Since then they've spent in excess of $20 million in construction costs to renovate and update the home. The estate, which was originally was built by Prudential Insurance founder and US Sen. John Dryden in 1899, is not for sale but it might not move quickly if it was placed on the market. It's the sort of white elephant which has a tendency to linger in the MLS.

While the construction on the house was taking place Ecko and his family stayed in a four-bedrom Colonial home next door. That home was listed for sale in March for $1.299 million. The home is on five acres and has been renovated with a gourmet kitchen. It includes a master bedroom suite with a walk-in closet, a downstairs recreation room and a bonus room with daylight windows and a full bath. It remains on the market with a reduced price of $1.099 million.

Gallery: Marc Ecko In New Jersey

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Tags: bernardsville, celebrity real estate, CelebrityRealEstate, ecko, marc ecko, MarcEcko, new jersey, NewJersey, stronghold

Marc Ecko Facing Financial Woes

by Deidre Woollard (RSS feed) —

Filed under: Apparel, Wealth

Earlier this month the NY Post reported that fashion designer Marc Ecko had listed a colonial home he owns in New Jersey for $1.299 million in order to help satisfy more than $2.1 million in construction liens for his New Jersey castle, Stronghold. Now the Post reveals that Ecko has more problems than just his castle, which he reportedly has spent nearly $22 million fixing up.

The Post says that Ecko has hired investment bank Peter J. Solomon to help refinance at least $170 million in debt. The debts are owed to a couple of important business partners. If he can't find a willing lender, Ecko may have to sell off some assets. Like many fashion outfits, the Marc Ecko brand took a hit during the past retail season. The Post's sources say the company owes more than $100 million to Li & Fung, a global trading company that helps manufacture Marc Ecko products. He also also defaulted on a term loan of more than $70 million from a syndicate led by commercial-lending giant CIT and although he won forbearance on the loan, CIT will have to be paid by summer.

Michael Golden, chief marketing officer at Marc Ecko Enterprises, shrugged off concerns to the Post saying that the company is still strong. Rumors persist that the company is trying to lease out part of its new York City headquarters. A few years ago, Ecko contemplated offers from Jones Apparel Group and Tommy Hilfiger in the $500 million range but would be hard-pressed to find a similar deal now.

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Tags: designer, fashion, marc ecko, MarcEcko, new jersey, NewJersey, stronghold