Shares of Sequential Brands Group Inc., the successor to People’s Liberation Inc., plunged 26 percent on Tuesday after the licensing company said that its chief executive had resigned.
The Los Angles company, which changed its name and business model in February following a cash infusion from a private equity company, said Colin Dyne, chief executive since May 2007, had resigned effective immediately to pursue other opportunities. Dyne was also the company’s second-largest shareholder.
Dyne, according to the most recent regulatory filings, has a 20 percent stake in Sequential. The company’s brands include Justin Timberlake’s William Rast apparel line, People’s Liberation designer denim line and DVS shoes. The company did not say whether Dyne also was selling his shares and leaving the board.
Sequential Brands said that its board had replaced Dyne with Yehuda Shmidman, previously chief operating officer of Iconix Brand Group Inc., a New York brand manager.
“With Yehuda’s proven track record, we are confident that we have the leader in place to execute our brand management and licensing playbook going forward,” Chairman William Sweedler said in a statement.
Sequential will soon launch the William Rast brand at J.C. Penney, and recently signed new licensing agreements for its DVS and People’s Liberation brands.
Sweedler is a co-founder and partner of Tengram Capital Partners of Westport, Conn., a consumer private equity firm targeting consumer and retail sectors. It invested a combination of $24 million in debentures, preferred stock and warrants in Sequential in February. He also is a former director and executive vice president of Iconix, Shmidman’s former company.
Sequential shares closed down $1.50, or 26 percent, to $4.25 on the Over-the-Counter Bulletin board.