Cherokee receives $33.9mn from sale of finder's fee agreement
02 Nov '06
2 min read
Cherokee Inc, a leading licensor and global brand management company, announced that it has received a payment of $33.0 million from Iconix Brand Group Inc, pursuant to the terms of the Termination and Settlement Agreement entered into by Iconix and Cherokee earlier this year.
In addition, Cherokee also announced that it has received payment of $900,000 of past royalties, representing the unauthorized deduction previously taken by Mossimo Inc from royalties due to Cherokee in its fiscal 1st Quarter. The total $33.9 million payment is expected to be treated by Cherokee as one-time revenues in Cherokee's fiscal 3rd Quarter.
In addition, Cherokee announced that it will also receive a future payment from Iconix of all accrued and unpaid Finder's Fees due from Mossimo for its fiscal 3rd Quarter ended October 28, 2006 and any additional days thereafter, up to and including the closing date of Iconix's acquisition of Mossimo. Upon receipt of these final royalties, Cherokee will not receive any further royalties from Mossimo.
Cherokee's Chairman, Robert Margolis, stated, "Our introducing Mossimo to Target and their licensing deal signed in March 2000 resulted in the transformation of Mossimo from a struggling apparel manufacturer to a successful licensing company. This represented alandmark achievement in our brand representation business, and certainly created a platform for Mossimo to become profitable.”
marketing@alchempro.com
