Cherokee Inc. (NASDAQ: CHKE), a leading licensor and global brand management company, today announced that it has entered into an exclusive agreement in the U.S. with JEM Sportswear for men’s and boy’s knit tops for its Sideout brand. JEM Sportswear, with over 38 years of experience, is a powerful force in the industry and is known for its commitment to product design, quality and speed to market.
Robert Margolis, Chairman & CEO of Cherokee Inc., said, “Many lifestyle brands have entered into exclusive relationships with specific retailers creating a void in branded lifestyle merchandise for many middle market retailers that do not have the economies of scale to manufacture their own licensed lifestyle product. We believe Sideout’s California lifestyle heritage, with retail sales having peaked at over $100 million dollars annually, can help fill this void. We are planning to partner with premier wholesale manufacturers that are capable of supporting the needs of these retailers.”
Jeff Marine, Chairman & CEO, JEM Sportswear, said, “The Sideout brand has a clean and marketable lifestyle heritage. We look forward to collaborating with Cherokee to build on this heritage.”
Jay Kester, Executive Vice President of Marketing for Cherokee Inc., said, “We are pleased to partner with JEM and look forward to expanding our network by complementing the JEM license with other premier manufacturers in specific categories including sportswear, activewear, swimwear, and other available categories. We look forward to having product in the market by spring/summer 2010.”
About Cherokee Inc.
Cherokee Inc., based in Van Nuys, is a marketer, licensor and manager of a variety of brands it owns (Cherokee, Sideout, Carole Little and others) and represents. Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories and footwear, as well as home furnishings and recreational products. Premier clients for the Cherokee brand around the world include Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), Pick ‘n Pay (South Africa), Grupo Pão de Acucar (Brazil), S.A.C.I. Falabella (Chile and Peru), Arvind Mills (India), Shufersal LTD. (Israel), Comercial Mexicana (Mexico) and Eroski (Spain). Premier clients for Cherokee’s other brands include the TJX Companies (U.S., Canada and Europe) for the Carole Little brands, and Shanghai Bolderway (China) for the Sideout Brand. Cherokee also placed the Norma Kamali brand with Wal-Mart.
About JEM Sportswear
JEM Sportswear has been in business 38 years and is based in San Fernando, CA. In the last eight years JEM has built a reputation as a go-to company for entertainment companies wanting to marry their characters and brands with fashion and quality. Currently, the company has 35 active licensing deals with Disney, Hasbro, Fox, Summit and Live Nation, to name but a few. With offices in San Fernando and Laguna, California, and a factory in Ensenada, Mexico, JEM’s innovative printing techniques and washes allow it to consistently create high quality, fashion-forward looks for the many brands it has partnered with.
Statements included within this news release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. When used, the words “anticipates”, “believes”, “expects”, “may”, “should” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements included in this press release (including, without limitation, express or implied statements regarding anticipated growth in international markets, future dividend payments, anticipated free cash flows and potential future business development) involve known and unknown risk and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include, but are not limited to, the effect of national, international and regional economic conditions, the financial condition of the apparel industry and the retail industry, the overall level of consumer spending domestically and internationally, the effect of intense competition in the industry in which the Company operates, adverse changes in licensee or consumer acceptance of products bearing the Company’s brands as a result of fashion trends or otherwise, the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees for most of the Company’s revenues, the Company’s dependence on its key management personnel and adverse determinations of claims, liabilities or litigations. A further list and description of these risk, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for Fiscal Year 2009, and in its periodic reports on Forms 10-Q and 8-K (if any). Undue reliance should not be placed on the forward-looking statements contained herein because some or all of them may turn out to be wrong. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments.
Contacts:
Cherokee Inc.
Russell J. Riopelle, Chief Financial Officer
818-908-9868
or
Integrated
Corporate Relations, Inc.
John Mills
310-954-1100
