Brand licensor Cherokee is exploring the possibility of a sale, it said today (18 December).

The company, which has lucrative licensing agreements with Target Stores and Tesco, announced that it intends "to explore strategic alternatives to increase shareholder value, including among others, a possible sale of the company".

Cherokee also said it has retained Goldman, Sachs & Co as its financial advisor to evaluate and assist with the process.

"There can be no assurance regarding the timing of, or whether, this process will result in any sale or other transaction.

"The company does not intend to provide updates or make any further comment until its board of directors has approved a definitive transaction, if that occurs," Cherokee added in a statement.

The company, whose portfolio of brands includes Cherokee, Sideout and Carole Little, posted third quarter net earnings of $3.7m last week, up from $3.28m in the year ago period - fuelled by continued growth of its international royalty revenues.