SHERMAN OAKS, Calif., June 05, 2018 (GLOBE NEWSWIRE) — Cherokee Global Brands (NASDAQ:CHKE), a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands, today announced the sale of Flip Flop Shops®, its franchise retail chain, to Bearpaw Holdings, LLC for an undisclosed amount.
“We’re pleased with the transaction, which aligns with our strategy to focus on scaling our high-growth brands through global licensed partnerships,” commented Henry Stupp, chief executive officer. “We’re confident that Bearpaw Holdings is positioned to realize the full potential of Flip Flop Shops.”
Cherokee Global Brands intends to use the sale proceeds to reduce its long-term debt.
About Cherokee Inc.
Cherokee is a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands including Cherokee®, Hi-Tec®, Magnum®, 50 Peaks®, Interceptor®, Tony Hawk® Signature Apparel and Hawk Brands®, Liz Lange®, Everyday California®, Sideout® and Carole Little® 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 approximately 80 countries and approximately 20,000 retail doors plus ecommerce.
ABOUT BEARPAW HOLDINGS, LLC:
Parent company to Bearpaw Footwear, Bearpaw Holdings manufactures and sells footwear for men, women, and children. The company offers a range of leather and fur boots, slippers, suede and oily pressed uppers, and knit shafts and uppers. It serves customers through retailers in the United States and internationally, as well as online. The company was founded in 1986 by Tom Romeo and is based in Citrus Heights, California.
Symphony Investment Partners, a boutique investment firm based in Washington DC and in Montecito California, advised Cherokee in this transaction.
Safe Harbor Statement
This news release may contain forward-looking statements regarding future events and the future performance of Cherokee Global Brands. Forward-looking statements in this press release include, without limitation, express or implied statements regarding: anticipated market developments and opportunities; intended reduction of long-term debt. 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. A more detailed discussion of such risks and uncertainties are described in the Company’s annual report on Form 10-K filed on April 19, 2018, its periodic reports on Forms 10-Q and 8-K, and subsequent filings with the SEC the Company makes from time to time. Except as required by law, the Company undertakes 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
Steve Brink, CFO
Addo Investor Relations
Laura Bainbridge/Patricia Nir