Cherokee Global Brands Announces Multi-category License Agreements to Expand its Hi-Tec and 50 Peaks Brands Throughout North ...
July 10 2017 - 8:00AM
Cherokee Inc. (NASDAQ:CHKE), a global brand marketing platform that
manages a growing portfolio of fashion and lifestyle brands,
announced today that it has entered into license agreements for its
Hi-Tec® and 50 Peaks® brands in several key growth
categories.
The new licensing agreements with the Tharanco Group for men’s
and women’s apparel and Interbrand for accessories including socks,
gloves, and hats, mark a significant step toward broadening the
Hi-Tec and 50 Peaks brands beyond footwear leveraging the brands’
existing strong position in the outdoor and active markets.
Henry Stupp, chief executive officer of Cherokee Global Brands
stated, “As part of our strategic post-acquisition plan for Hi-Tec,
we are partnering with industry-leading footwear, apparel and
accessories specialists to ensure that the full potential of our
Hi-Tec portfolio is realized. We have completed this important
initial phase in just over six months through our agreements with
Carolina Footwear, Tharanco and Interbrand. These deeply-connected,
retail-savvy partners will allow us to quickly scale our newest
outdoor and active lifestyle brands across multiple channels and
categories.” The new collections will be available in national
department stores and specialty and outdoor retailers throughout
North America beginning early 2018.
Tharanco’s President and CEO, Michael Setola said, “We are proud
to announce the launch of our outdoor division in partnership with
Cherokee Global Brands. Hi-Tec is a powerful outdoor lifestyle
brand and the partnership couldn’t be better timed.”
Bill Hackett, President of Tharanco Outdoor said, “The outdoor
recreation industry is booming and we are well positioned to fully
participate in the opportunity through our partnership with
Cherokee Global Brands. We look forward to delivering great
functional apparel at a compelling value.”
Tharanco specializes in providing fashionable clothing that
utilizes the latest trends and fabric technologies. Over the course
of its 25-year history, the company has become a force in the
apparel and retail industry through its broad distribution of mens
and woman’s national and private brands in all retail tiers
throughout North America and internationally.
Robert McMeekin, CEO of Interbrand said, “As the market for
outdoor lifestyle brands evolves and grows, Hi-Tec represents an
important partnership for us. Hi-Tec’s history of providing
high-quality products and promoting social consciousness fits
perfectly with our culture. Our strategic positioning is also well
aligned as consumers seek greater product versatility and
value.”
Interbrand LLC, is a global accessories company with specific
expertise in socks, headwear, gloves, scarves, and leather goods.
Interbrand designs, markets and distributes products in over 35
countries, through department stores, regional specialty, national
athletic, big box outdoor, mass retailers and wholesale clubs in
over 8,000 doors nationally.
Ed Van Wezel, CEO of Hi-Tec Sports International Holdings
B.V., added, “Our portfolio of brands enjoys an authentic and rich
heritage. We are proud to have the opportunity to expand our vision
through these new partnerships.”
About Cherokee Inc.Cherokee is a global brand
marketing platform that manages a growing portfolio of fashion and
lifestyle brands including Cherokee®, Carole Little®, Tony Hawk®
Signature Apparel and Hawk Brands®, Liz Lange®, Everyday
California®, Sideout®, Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®
and Flip Flop Shops®, a leading franchise retail chain, across
multiple consumer product categories and retail tiers around the
world. The Company currently maintains license and franchise
agreements with leading retailers and manufacturers that span over
110 countries in 12,000 retail locations and digital commerce.
Safe Harbor Statement
This news release contains forward-looking statements regarding
future events and the future performance of Cherokee. A
forward-looking statement is neither a prediction nor a guarantee
of future events or circumstances and is based on currently
available market, operating, financial and competitive information
and assumptions. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expected or projected, including, among others, risks
that: the Company and its partners will not achieve the results
anticipated in the statements made in this release; Cerberus will
terminate its obligations under the credit facility, accelerate the
payment on any unpaid balance of the credit facility and exercise
any other rights it may have, including foreclosing on our assets
that serve as collateral for the loan; that the Company’s Quarterly
Report on Form 10-Q will not be filed as anticipated and that
further delays in such filing could cause the Company’s lenders to
exercise their rights under the credit agreements or the Company’s
stock to be delisted from Nasdaq; the anticipated benefits of the
Hi-Tec acquisition will not be achieved; global economic conditions
and the financial condition of the apparel and retail industry
and/or adverse changes in licensee or consumer acceptance of
products bearing the Company’s brands may lead to reduced
royalties; the ability and/or commitment of the Company’s licensees
to design, manufacture and market Cherokee®, Hi-Tec®, Magnum®, 50
Peaks®, Interceptor®, Carole Little®, Tony Hawk® and Hawk Brands®,
Liz Lange®, Everyday California® and Sideout® branded products
could cause our results to differ from our anticipations; the
Company’s dependence on a select group of licensees for most of the
Company’s revenues makes us susceptible to changes in those
organizations; and the Company’s dependence on its key management
personnel could leave us exposed to disruption on any termination
of service. The risks included here are not exhaustive.
Other risks and uncertainties are described in our annual report on
Form 10-K filed on May 18, 2017, its periodic reports on Forms 10-Q
and 8-K, and subsequent filings with the SEC we make from time to
time, including the preliminary prospectus supplement that we filed
in connection with the offering described herein. Except as
required by law, we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Contact:
Cherokee Global Brands
Jason Boling, CFO
818-908-9868
Addo Investor Relations
Laura Bainbridge/Patricia Nir
310-829-5400
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