NexCen Brands, which has been on the block since May, 2008, finally found a buyer in the form of private equity firm Levine Leichtman Capital Partners, which is buying the company's core franchise business for $112.5 million, subject to working capital adjustments. Through the deal, the Beverly Hills-based firm will gain control of franchised brands The Athlete's Foot, Shoebox New York, Marble Slab Creamery and Pretzel Time.

NexCen, meanwhile, will use the proceeds to repay a loan from BTMU Capital Corp. The board, following the close of the transaction, expects to recommend a plan of dissolution, which would distribute to shareholders the balance of any proceeds that remain from the sale.

NexCen first got into trouble in 2008 after the company discovered various oversights made in its 2007 annual report. Specifically, when NexCen acquired Great American Cookie, the company amended its bank facility to borrow an additional $70 million to finance the purchase. The amendment included an accelerated-redemption feature that was applicable to $35 million of the loan, reducing the company's cash reserves. Upon disclosing the oversight, the company expressed doubts regarding its ability to continue as a going concern.

By late 2008, NexCen started unloading assets, and sold its Bill Blass brand for $10 million to Peacock International Holdings.

Levine Leichtman is currently investing out of its fourth fund, the $1.1 billion Levine Leichtman Capital Partners IV, LP. The firm is familiar with the franchised model, having previously backed the likes of Quizno's Corp., CiCi's Pizza, and Wetzel's Pretzels, among others. The firm more than tripled its money on its Quizno's investment

Michael Dull, who was named president of NexCen's QSR franchise management division in 2007, will continue to oversee the assets under Levine Leichtman.

Rothschild advised NexCen on the sale, while Kirkland & Ellis provided legal counsel. Honigman Miller Schwartz and Cohn served in a similar capacity for the buyer.

The deal is expected to close in the third quarter.

A call to NexCen's spokeswoman was not immediately returned by press time.