Cherokee Global Brands Amends Credit Agreement
31 Janvier 2019 - 3:00PM
Cherokee Global Brands (NASDAQ: CHKE), a global brand marketing
platform that manages a growing portfolio of fashion and lifestyle
brands, today announced its amended credit facility.
On January 30, 2019, Cherokee entered into a second amendment to
its senior secured credit facility with Gordon Brothers Finance
Company to borrow an additional $5.3 million under the senior
secured credit facility. A portion of the net proceeds were
used to repay the $2.0 of subordinated notes that the Company
entered into on December 28, 2018, and the balance will be used for
general working capital purposes. With the amendment, the senior
secured credit facility no longer requires that the Company raise
$2.0 million of additional capital. Furthermore, this new amendment
reduces from $6.0 million to $1.0 million the allowable level of
junior capital the Company can raise to support operations.
“We are pleased to enter into our amended agreement with Gordon
Brothers, which improves our financial flexibility and positions us
to execute our strategic plan with sufficient liquidity,” commented
Henry Stupp, Chief Executive Officer. “This marks an important next
step towards stabilizing the Company, while supporting our global
licensing partners and stakeholders. We want to thank Gordon
Brothers, who have proved a strategic, like-minded investor, for
their continued support and partnership.”
Mr. Stupp concluded, “We entered Fiscal 2019 with aggressive
goals; namely, complete the integration of Hi-Tec, right size our
operational structure, focus and align our brands, and place the
Company back on solid financial footing. We are pleased to have
achieved these objectives. Through the actions taken over the past
several quarters, we are better positioned to realize the full
potential of all brands in our portfolio with our strong leadership
and best-in-class licensees and retail partners. Looking
forward, our team is focused on growing our global retail
distribution across the portfolio of brands we own, brands we
develop and brands we create through new product introductions and
expanded marketing activities.”
About Cherokee Global Brands Cherokee
Global Brands is a global brand marketing organization that manages
a growing portfolio of fashion and lifestyle brands including
Cherokee®, TONY HAWK® Signature Apparel and Hawk Brands®, Liz
Lange®, Everyday California®, Sideout®, Hi-Tec®, Magnum®, 50 Peaks®
and Interceptor® across multiple consumer product categories and
retail tiers around the world.
The Company currently maintains license and franchise agreements
with leading retailers and manufacturers that span over 110
countries in 12,000 retail locations and digital commerce.
Safe Harbor StatementThis news release may
contain forward-looking statements regarding future events and the
future performance of Cherokee Global Brands. Forward-looking
statements in this press release include, without limitation,
express or implied statements regarding: anticipated market
developments and opportunities; anticipated growth in the Company’s
business; anticipated benefits of the amended credit facility; and
anticipated effects of the liquidity infusion. A forward-looking
statement is neither a prediction nor a guarantee of future events
or circumstances and is based on currently available market,
operating, financial and competitive information and assumptions.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those expected
or projected, including, among others, risks that: the Company and
its partners will not achieve the results anticipated in the
statements made in this release; global economic conditions and the
financial condition of the apparel and retail industry and/or
adverse changes in licensee or consumer acceptance of products
bearing the Company’s brands may lead to reduced royalties; the
ability and/or commitment of the Company’s licensees to design,
manufacture and market Cherokee®, Hi-Tec®, Magnum®, 50 Peaks®,
Interceptor®, Carole Little®, Tony Hawk® and Hawk Brands®, Liz
Lange®, Everyday California® and Sideout® branded products could
cause our results to differ from our anticipations; the Company’s
dependence on a select group of licensees for most of the Company’s
revenues makes us susceptible to changes in those organizations;
and the Company’s dependence on its key management personnel could
leave us exposed to disruption on any termination of service. A
more detailed discussion of such risks and uncertainties are
described in the Company’s annual report on Form 10-K filed on
April 19, 2018, its periodic reports on Forms 10-Q and 8-K, and
subsequent filings with the SEC the Company makes from time to
time. Except as required by law, the Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor Contact:Cherokee Global BrandsSteve Brink,
CFO818-908-9868
Addo Investor RelationsLaura Bainbridge/Patricia
Nir310-829-5400
Cherokee Inc. (MM) (NASDAQ:CHKE)
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