Nice get, Abe.
In his extensive report on Maclaren USA's Ch. 7 liquidation mystery, Brandchannel's Abe Sauer scored some quotes from "ex-Creative Director of Maclaren Nursery," David Netto.
And it sounds like the $1.1 million owed to Netto in the bankruptcy documents might just be the tip of the iceberg:
"Whatever [Maclaren USA CEO Farzad Rastegar] is up to, I don't think the baby space is appropriate for this kind of behavior," said David Netto today to brandchannel from New York City, where he's currently exploring his legal options to reclaim the $1.1 million plus up to $5 million in royalties that Maclaren USA contractually owes him after acquiring his NettoCollection brand in 2009. "If you're going to own a stroller company, you have to be accountable to your obligations to parents and everybody else," he added.$5 million in royalties is a pretty huge pile of royalties. Yes, I was about to use language that might not be appropriate for the baby space. How about we say it's a diaperful of royalties? Maybe a Diaper Genie-ful? I'm not really seeing how that much could be at stake for just royalties, which, by definition, are only a percentage of total sales. Have Maclaren Nursery's numbers been outpacing Maclaren Strollers? I would be surprised.
But anyway, I guess Netto's real point in Brandchannel is that he just found out about the bankruptcy, and that the company's sense of accountability is, well, I'm sure he wouldn't want his quote to be misconstrued, so we'll just leave it at that.