NexCen wasn't an early front-runner to acquire Blass. In 2005, UCC Capital, headed by D'Loren, was hired to find a buyer. Blass was no longer involved as a liaison with the licensees — he died in June 2002 — and both Groveman and Tharani were exploring different exit strategies. But a deal never materialized and MMG subsequently was hired to find the right partner. Financial and industry sources said that several firms expressed interest in Blass, including financial buyers and David Chu of DC Design International.

In June 2006, UCC was bought by Aether Holdings and renamed NexCen Brands. The new company gives D'Loren a platform to create his own brand management firm using a business model similar to the brand management structure he created for Iconix Brand Group. D'Loren calls it a "value-net model."

NexCen's first acquisition was The Athlete's Foot in August for a cash and stock deal valued at $51.5 million. D'Loren was also well-versed in that business, having completed in 2003 via UCC Capital a private placement transaction that involved a whole company securitization backed by The Athlete's Foot's intellectual property. The retailer issued long-term, asset-backed notes that were backed by franchise fee revenues generated by its stores and related trademarks. After six months of operations on a rolling 12-month period, NexCen is on target to do three to five acquisitions per year.

The business model D'Loren created sold Groveman on who would be an ideal partner to grow the Blass name.

"The business model of NexCen is the model for businesses for the future," Groveman said. "The possibility of franchise stores, for example, is beyond us as a small company, but not [beyond us] as part of a larger group, especially when looking at international opportunities."

NexCen focuses on three vehicles for its model: retail franchising, consumer branded products, and quick-service restaurant franchising. Its goal is to leverage brand management, marketing, licensing expertise and costs across the three operating vehicles.

The model also generates royalties at both wholesale and retail levels on sales of its branded goods through company owned channels of distribution, thereby mitigating loss of sales via third-party operations. The risks to working capital such as inventory needs and store build-outs, are transferred to third parties, most typically franchisees.

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