CHEROKEE ACQUIRES CAROLE LITTLE NAME ONCE-PREMIUM LINE SET FOR T.J. MAXX.

Byline: Brent Hopkins Staff Writer

VAN NUYS - Once-upscale Carole Little products will live again in the bargain aisle, as brand manager The Cherokee Group announced Wednesday that it has acquired the trademarks of CL Fashions.

Founded in 1974 by designer Carole Little and business partner Leonard Rabinowitz, the firm once saw its signature line and subsidiary brands CL II, Saint-Tropez West and others sold in Saks Fifth Avenue, Neiman Marcus and Macy's. After an ill-fated, litigious merger, the line disappeared from shelves when CL Fashions filed for Chapter 7 bankruptcy in 2000.

In reintroducing the line, Cherokee has decidedly different plans. According to a source familiar with the deal, it acquired the rights to the names, once appraised at a value of $27 million, for a mere $2.25 million in a bankruptcy court auction. In conjunction with the purchase, Cherokee announced an exclusive distribution deal with The TJX Cos., operator of T.J. Maxx and Marshalls, expected to put Carole Little back on shelves soon.

Rabinowitz, who now heads a Los Angeles-based design studio with Little, lamented the unusual flight of their brand from luxurious department stores to off-price racks.

``It feels weird to not have control of your baby,'' he said. ``It's a very significant personal hurt, but Cherokee's a good company, and I think this will work well.''

Cherokee has found tremendous success in its management of its own signature line, Side Out and Mossimo, selling through Target and Mervyn's domestically. The 14-person operation acts as a go-between for retailers and brand names, ensuring consistency and management ease. In picking up the ailing CL Fashion brand names, the manager gets the jewels of the brand, without the hassle of its financial problems.

``Carole Little has historically been a great brand,'' said Kyle Westcoat, Cherokee's chief financial officer. ``It's always been known for quality and fashion.''

While the signature line will be sold exclusively in TJX's stores, Westcoat said Cherokee is mulling over what to do with the subsidiary lines. Though the brands have been off shelves for two years, retail expert Aubie Goldenberg figures they'll still resonate with shoppers. Primarily aimed at baby boomer-age women, the designs won acclaim for their figure-friendliness.

``I think they're brands that have consumer awareness,'' said Goldenberg, a partner with Ernst & Young's Los Angeles office. ``Obviously, it might not have strong appeal in young juniors, but when you get into more-mature consumers, they were relatively well-recognized brands that had been around for a while.''

More significantly for Cherokee, the agreement with TJX gives the brand manager a lucrative line into the off-price market, still a hot sector as shoppers mind their finances. Though Marshalls and T.J. Maxx generally win customers based on low prices, rather than advertising brand names, Goldenberg thought the exclusive introduction would be a shrewd one. Though neither side would discuss the terms of the arrangement, he pointed to Cherokee's past success in leveraging brand names as an indicator of what it could bring.

``The guys at Cherokee are smart enough to know what they're doing,'' he said. ``They must have gotten a good commitment from TJX to go through with this.''