Cherokee Inc. Facilitates Agreement for the Hot Kiss Brand in China.Business Editors VAN NUYS, Calif.--(BUSINESS WIRE)--Aug. 5, 2003 Cherokee Inc. (Nasdaq:CHKE) announced today that its client Hott Kiss, a leading American junior apparel and accessory brand, has entered into an exclusive international licensing agreement for mainland China with Zhejiang Xuege Fashion Co., Ltd., a major China-based manufacturer, marketer and retailer. Detailed terms of the multi-year agreement were not disclosed, but it includes a wide range of categories including junior's and girl's apparel, accessories, sunglasses sunglasses A tinted pair of glasses used to ↓ light arriving at the eye, which are labeled according to the amount of UV light blocked; nonprescription glasses are classified according to use and amount of UV radiation blocked Sunglasses , watches and footwear. This marks the first licensing agreement in Asia for Hot Kiss. Xuege is planning to open a minimum of 140 company-owned and franchised retail locations under the Hot Kiss banner. "By bringing these two companies together, we were able to satisfy the desire for a fashion forward, well-designed and highly marketed American brand in the Chinese marketplace," said Michael Choe, Director of Business Development for Cherokee. "We will build on this success in China to assist Hot Kiss in its efforts to grow its brand internationally." Moshe Tsabag, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Hot Kiss said, "Cherokee, with its global reach, introduced us to a variety of potential licensees for the Hot Kiss brand. Through this new partnership with Xuege, we look forward to expanding our customer base and our product offerings." Larry Sass, Cherokee Senior Vice President added, "We are pleased to have completed another international transaction. As the world becomes smaller and premium brands become larger, our role in creating licensing opportunities between American brands and overseas companies will continue to become more important for the brands we represent." About Zhejiang Xuege Fashion Co., Ltd. Zhejiang Xuege Fashion Co., Ltd., established in 1997, is a women's wear women's wear n. Clothing for women. company with retail shops in China. It has won various awards including "China's 10 Best Designers" by China Fashion Weekly. About Hot Kiss Hot Kiss is a Los Angeles-based manufacturer of junior sportswear, denim, sweaters and dresses. The company recently assigned licensees to produce footwear, handbags, small leather goods, belts, shoes, swimwear, children's wear, timepieces and a Canadian collection under the Hot Kiss label. Principal and owner, Moshe Tsabag, formerly of Yes Clothing Co., launched this trend-setting collection in 1996. Today Hot Kiss can be found in 4000 doors at national junior specialty chains like Gadzooks gad·zooks interj. Used as a mild or ironic oath: "Gadzooks! Is there a panic detector, akin to a smoke detector, that sniffs anxiety in the air?" George F. Will. , Rampage and Wet Seal Wet Seal is a young women's clothing retailer headquartered in Foothill Ranch, California. It carries moderately priced brand name and company-designed apparel and accessories. The company was founded in Newport Beach, California by Lorne Huycke in 1962 as "Lorne's. , and major department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. such as Macy's, Dillard's, Nordstrom, Burdines, Parisian, and Rich's, and hundreds of specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" nationwide. Retail price points range from $20-$50. About Cherokee Inc. Cherokee Inc., based in Van Nuys, California, a marketer, licensor and manager of a variety of brands it owns and represent. Currently, Cherokee has licensing agreements in a number of categories, including family apparel, fashion accessories Fashion accessories are items apart from the garment itself, which complement the whole outfit. Fashion accessories include jewelry, gloves, handbags, hats, or scarves. and footwear, as well as home furnishings and recreational products. Some of Cherokee's premiere retail clients around the world include Target Stores, Marshall Fields Marshall Field (August 18, 1834 - January 16, 1906) was founder of Marshall Field and Company, the Chicago-based department stores. He was born on a farm in Conway, Massachusetts, the son of John Field IV and wife Fidelia Nash. , Mervyn's and TJX Companies The TJX Companies, Incorporated (NYSE: TJX), is the largest international apparel and home fashions off-price department store chain, based in Framingham, Massachusetts, in the United States. (U.S.), Zellers (Canada), Carrefour and Sport Scheck (Europe), Tesco (U.K. & Ireland) and Shanghai Bolderway (China). Statements included within this release that are not historical in nature, including our exploring alternatives, constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for the purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provided by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. When used, the words "anticipates", "believes", "estimates", "objective", "expects", "may"," likely", "should", "could", "possible, "plans", "goals" and similar expressions are intended to identify such forward-looking statements. In particular, the forward-looking statements in this news release include statements regarding the Company's goals for future growth in revenues, earning and dividends, the prospects of existing and new licensees such as Target Stores and Carrefour, and the Company's pursuit of additional licensing opportunities or brands to acquire or represent. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include, but are not limited to, the effect of national and regional economic conditions, the financial condition of the apparel industry and the retail industry, the overall level of consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , the effect of intense competition in the industry in which the Company operates, adverse changes in licensee or consumer acceptance of products bearing the Company's brands as a result of fashion trends or otherwise, the ability and/or commitment of the Company's licensees to design, manufacture and market Cherokee and Sideout branded products, the Company's dependence on a single licensee for most of the Company's revenues, the Company's dependence on its key management personnel, and adverse determinations of claims, liabilities or litigations, including our dispute with Mossimo, and the effect of a breach or termination by the Company of the management agreement with the Company's CEO. A further list and description of these risks, uncertainties and other matters can be found in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for Fiscal 2003, and in its periodic reports on Forms 10-Q and 8-K (if any). Undue reliance should not be placed on the forward-looking statements contained herein because some or all of them may turn out to be wrong. The Company disclaims any intent or obligation to update any of the forward-looking statements contained herein to reflect future events and developments. |
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