Report: NexCen Hires Financial Advisor

New York City NexCen Brands has hired Rothschild as its investment advisor, according to a report in Women’s Wear Daily. Rothschild is expected to help the company decide which of its assets it should sell, the report said. NexCen’s holdings include the Bill Blass and Waverly brands along with the Marble Slab Creamery, MaggieMoos, Pretzel Time, Pretzelmaker, and Great American Cookies franchised brands.

On Monday, NexCen raised questions about its survival and said it planned to explore strategic alternatives, including the sale of one or more of its businesses, to increase its liquidity.

The company said it would delay filing its first-quarter report and expects to amend its annual report for the 2007 fiscal year because disclosures regarding its bank credit facility were not included in the filing.

NexCen said its bank credit facility with BTMU Capital Corp. was amended in January when the company bought Great American Cookies to allow NexCen to borrow another $70 million to finance a portion of the purchase price. The amendments included an accelerated-redemption feature that required $35 million of the additional financing to be reduced to $5 million by Oct. 17, 2008.

NexCen said the accelerated-redemption feature was not disclosed in its filings.

The company said it now believes “there is substantial doubt about its ability to continue as a going concern.” It added that doubt might have existed when the company filed its 2007 annual report.