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Esteemed Contributor
Posts: 7,097
Registered: ‎09-05-2014

Translation:  Ripka is now worthless to us and we are taking its value on our books down to 0 (zero.)

Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

Re: Judith Ripka ring

[ Edited ]

@Johnnyeager wrote:

Xcel Brands, the Ripka owner, has basically written the brand down after a recent charge and a limited useful life.  It was a fine product years ago.

 

Effective January 1, 2020, we determined that the Ripka Brand, inclusive of all its trademarks, has a finite life of 15 years, and began to amortize these trademarks on a straight-line basis accordingly. During the year ended December 31, 2020, delays and uncertainty in implementing the brick-and-mortar retail store strategy for a portion of the Ripka Brand, primarily as a result of the novel coronavirus disease pandemic, indicated that the carrying value of the Ripka Brand trademarks may not be recoverable. Therefore, we performed an impairment test of finite-lived intangible assets, and as a result, recorded a $13.0 million impairment charge related to the Ripka Brand trademarks.




If anyone is wondering about the term impairment charge, Wikipedia defines it as :

 

"An impaired asset is an asset which has a market value less than the value listed on its owner's balance sheet.[1]

According to U.S. accounting rules (known as US GAAP), the value of an asset is impaired when the sum of estimated future cash flows from that asset is less than its book value. At this point an impairment loss should be recognized, which is done by taking the difference between the fair market value (FMV) and the book value and recording this amount as the loss. This basically records the asset as if it were being acquired brand new at its FMV, recording this as its new book value.[2] This is a common occurrence for goodwill where a company will purchase a target company for more than the value of its net assets. Under US GAAP, goodwill is tested annually for impairment."

Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

@Kachina624 wrote:

When they hand out those MBAs, I wish they'd also require those guys to speak English.  It's like reading a medical journal, you understand about every fifth word. 


@Kachina624 @It's much harder than reading a medical journal. I wish I knew much more about finance than I do. 

Esteemed Contributor
Posts: 7,097
Registered: ‎09-05-2014

Xcel had an indefinite useful life for Ripka immediately before amortizing the remaining life to 15 years. Obviously,  they have no faith in the brand going forward,  bottom, bottom line.

Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

@Johnnyeager wrote:

Xcel had an indefinite useful life for Ripka immediately before amortizing the remaining life to 15 years. Obviously,  they have no faith in the brand going forward,  bottom, bottom line.


@Johnnyeager @Good posts. Thanks.

Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

I haven't bought any Ripka in years. Are the CZs the same Diaminque that Q is using now. This Diamonique looks very fake to me. 

Esteemed Contributor
Posts: 7,823
Registered: ‎12-24-2010

@Johnnyeager Why did they buy the line then?    If smart you'd think they did their homework BEFORE.

 

Must have needed a tax write-off.

Honored Contributor
Posts: 69,679
Registered: ‎03-10-2010

 


@Johnnyeager wrote:

Xcel had an indefinite useful life for Ripka immediately before amortizing the remaining life to 15 years. Obviously,  they have no faith in the brand going forward,  bottom, bottom line.


@Johnnyeager    I think most of us kissed Ripka goodbye when we heard who had bought it.  Without Judith it's nothing special. 

New Mexico☀️Land Of Enchantment
Honored Contributor
Posts: 69,679
Registered: ‎03-10-2010

 


@fthunt wrote:

@Johnnyeager Why did they buy the line then?    If smart you'd think they did their homework BEFORE.

 

Must have needed a tax write-off.


Sometimes they buy a line and cheapen it to eliminate competition for another chosen brand.  Isn't Xcel a Chinese-owned company?  Doubtful they'd need a tax write off. 

New Mexico☀️Land Of Enchantment
Esteemed Contributor
Posts: 7,097
Registered: ‎09-05-2014

Re: Judith Ripka ring

[ Edited ]

Xcel is not Chinese owned.  It is a publicly traded corporation with headquarters in the Garment District of New York.

 

Ripka was purchased in 2014 when I think it still got a lot of QVC airtime with Judith.