Brand licensor Cherokee said it would withdraw its takeover offer for the Mossimo brand if rival bidder Iconix pays it US$33m in cash.

Iconix has accepted Cherokee's offer, and the transaction now rests on Iconix's acquisition of the brand, which it expects to close in the third quarter.
Cherokee is expected to treat the payment as one-time revenues in the quarter in which it is received.

Iconix originally offered a bid of US$7.50 per share for the Mossimo fashion label. This was soon beaten by Cherokee's own offer of $8.50 per share.