2012 to be a highly transformational year, Cherokee CEO
15 Apr '11
4 min read
Mr. Stupp continued, "We expect 2012 to be a highly transformational year as we invest in all of our brands and position the Cherokee Group for future growth and profitability. Specifically, we plan on furthering the development of our Cherokee brand by building on its strong foundation and our near four-decade heritage as a leading, iconic American family lifestyle brand. We shall continue to focus our efforts on enhancing value for both our shareholders and retail partners."
Separation Agreement with Former Executive Chairman, Robert Margolis
In connection with the resignation of Cherokee's former Executive Chairman, Robert Margolis, on January 28, 2011, the Company entered into a Separation Agreement. Pursuant to the Agreement, the Company paid Mr. Margolis a lump sum payment of $2.3 million on February 17, 2011, and his annual performance bonus for Fiscal 2011 of $1.8 million on April 1, 2011.
Under the terms of the Separation Agreement, Cherokee agreed to repurchase 400,000 shares of its common stock from Mr. Margolis or his affiliates at $18.15 per share, for a total consideration of $7.3 million. The Company consummated the repurchase on February 7, 2011, and issued promissory notes to affiliates of Mr. Margolis, which were repaid in full on February 17, 2011, after securing a $10 million, three-year term loan from US Bank.
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