US: Cherokee buys back school uniform business
Global brand management company Cherokee Inc has bought back its school uniform business from uniform manufacturer Strategic Partners.
"The acquisition of the Cherokee school uniform rights from Strategic Partners allows us to bring a strategic business back within our control," said Cherokee CEO Henry Stupp.
The acquisition of the school uniform line is also expected to strengthen Cherokee's relationship with Target Corp through a multi-year license term.
In addition, the company has also extended its Cherokee brand licensing agreement with Mexican hypermarket group Comercial Mexicana until 31 December 2019.
"We look forward to continuing to roll-out our newly re-branded Comercial Mexicana locations throughout the year as well as building upon the strong Cherokee presence throughout Mexico," said Stupp.
|herokee Announces Developments with Two Key Retail Partners|
SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Feb. 4, 2013-- Cherokee Inc. (NASDAQ: CHKE), a leading innovator and global marketer of style-focused lifestyle brands, announced today that effective January 29, 2013 the Company has re-acquired the Cherokee School Uniform category from Strategic Partners.
“The acquisition of the Cherokee School Uniform rights from Strategic Partners allows us to bring a strategic business back within our control,” said Henry Stupp, Chief Executive Officer of Cherokee Inc.“This is another important milestone for our Company that will expand our overall product offering. Additionally, acquiring the Cherokee School Uniform category will further strengthen our relationship withTarget through a multi-year license term, which includes separate minimum guarantees and additional royalties. We expect this transaction will be immediately accretive for shareholders, and we will work closely with Target to expand our product offering for Cherokee families.”
Cherokee Inc. also announced today the recent extension of its Cherokee brand license agreement with Comercial Mexicana. The license agreement has been extended an additional six years through December 31, 2019. As partners for over six years, Cherokee and Comercial Mexicana have enjoyed mutual success and both parties look forward to continuing to build and grow the Cherokee brand throughout Mexico’s retail market.
“Comercial Mexicana has been an exceptional partner of the Cherokee brand, and we are very pleased to extend our licensing relationship,” Stupp commented. “Comercial Mexicana is a strong supporter of the Cherokee brand and vision. We look forward to continuing to roll-out our newly re-branded Comercial Mexicana locations throughout the year as well as building upon the strong Cherokee presence throughout Mexico.”
About Cherokee Inc.
Cherokee Inc. is a global marketer and manager of a portfolio of Fashion and Lifestyle brands including Cherokee®, Carole Little®, Liz Lange® and Sideout®, in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 40 countries around the world including Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain), Nishimatsuya (Japan), Magnit (Russia), Landmark Group’s Max Stores (certain Middle East and North Africa countries) and the TJX Companies (U.S., Canada and Europe).
Original source: http://phx.corporate-ir.net/phoenix.zhtml?c=104335&p=irol-newsArticle&ID=1780911&highlight=
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