Men’s and women’s apparel and accessories to launch in 2017
SHERMAN OAKS, Calif., July 10, 2017 (GLOBE NEWSWIRE) -- 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.
Cherokee Global Brands
Jason Boling, CFO
Addo Investor Relations
Laura Bainbridge/Patricia Nir