Cherokee Buys Back School Uniform Brand
Feb 4th 2013 9:53PM
Updated Feb 4th 2013 10:25PM
On Monday, apparel brand licensor Cherokee announced that it has reclaimed its Cherokee School Uniform category from privately held uniform manufacturer Strategic Partners, bringing what Cherokee termed "a strategic business" (apparently with no pun intended) "back within our control."
Cherokee noted that by bringing School Uniform back under its control, it will be able to "further strengthen our relationship" with Target -- to whom it licenses its Cherokee brand -- "through a multiyear license term, which includes separate minimum guarantees and additional royalties." Cherokee added that it expects the move to be "immediately accretive for shareholders."
Other than that, Cherokee disclosed no information on the financial terms of its deal with Strategic Partners.
In other licensing news, Cherokee announced that it has extended its brand license agreement with retailer Comercial Mexicana through Dec. 31, 2019.
Like most stocks on the market Monday, however, Cherokee shares declined in value, closing the day down 0.4% at $13.90.
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