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Investments in Unconsolidated Affiliates and Variable Interest Entities | 3 Months Ended
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Mar. 31, 2025
Investments in Unconsolidated Affiliates and Variable Interest Entities [Abstract] |
Investments in Unconsolidated Affiliates and Variable Interest Entities | 2. Investments in Unconsolidated Affiliates and Variable Interest Entities ​ Investment in IM Topco, LLC On May 31, 2022, Xcel sold 70% of the membership interests of IM Topco, LLC (“IM Topco”), a former subsidiary which holds the trademarks and other intellectual property rights relating to the Isaac Mizrahi Brand, to a subsidiary of WHP Global (“WHP”), a private equity-backed brand management and licensing company. From June 1, 2022 through March 31, 2025, the Company accounted for its 30% retained interest in the ongoing operations of IM Topco as a component of other operating costs and expenses under the equity method of accounting, using the distribution provisions set forth in the governing business venture agreement between the Company and WHP. For the three months ended March 31, 2025, the Company recognized a $0.58 million loss related to its investment in IM Topco, comprised of (i) a $0.18 million equity method loss, and (ii) a $0.40 million charge to adjust the carrying value of the investment in IM Topco to its estimated fair value as of March 31, 2025. For the three months ended March 31, 2024, the Company recognized a $0.52 million equity method loss related to its investment in IM Topco. The May 31, 2022 membership interest purchase agreement between Xcel and WHP (as subsequently amended) also provided that if (i) IM Topco royalties were less than $13.5 million for the twelve-month period ending March 31, 2025 or (ii) IM Topco royalties were less than $18.0 million for the year ending December 31, 2025 or (iii) Xcel failed to make certain payments to IM Topco under the terms of a license agreement between Xcel and IM Topco on or before January 30, 2025 then Xcel would be required to transfer equity interests in IM Topco to WHP equal to 12.5% of the total outstanding equity interests of IM Topco, such that Xcel’s ownership interest in IM Topco would decrease from 30% to 17.5%, and WHP’s ownership interest in IM Topco would increase from 70% to 82.5%. During the three months ended March 31, 2025, in accordance with the terms of the amended membership purchase agreement, WHP became contractually entitled to receive from Xcel equity interests in IM Topco equal to 12.5% of the total outstanding equity interests of IM Topco. On and effective April 15, 2025, the Company transferred such interests to WHP. ​ Refer to Note 11 for additional information regarding the Company’s accounting for this contingent contractual obligation, and refer to Note 12 for additional information regarding subsequent events related to the Company’s ownership interest in IM Topco. ​ Longaberger Licensing, LLC Variable Interest Entity ​ Since 2019, Xcel has been party to a limited liability company agreement with a subsidiary of Hilco Global related to Longaberger Licensing, LLC (“LL”). Hilco Global is the sole Class A Member of LL, and Xcel is the sole Class B Member of LL (each individually a “Member”). Each Member holds a 50% equity ownership interest in LL; however, based on an analysis of the contractual terms and rights contained in the LLC agreement and related agreements, the Company has previously determined that under the applicable accounting standards, LL is a variable interest entity and the Company has effective control over LL. Therefore, as the primary beneficiary, the Company has consolidated LL since 2019, and has recognized the assets, liabilities, revenues, and expenses of LL as part of its consolidated financial statements, along with a noncontrolling interest which represents Hilco Global’s 50% ownership share in LL.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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