Cherokee shares surge.

Shares of Cherokee Inc. took a quick jump last Monday on news that the company hired UBS Investment Bank to assist its board in "considering possible strategic alternatives." The shares edged even higher as the week unfolded.

By Thursday, stock in the Van Nuys-based brand marketing company closed at $35.80, up from $33.39 at the beginning of the week. All told, Cherokee shares have risen by 75 percent over the past year, and returned nearly 92 percent if dividend payments are factored in.

"Strategic alternatives" is a euphemism that is commonly used when a company is considering a sale. The press release did not say whether Cherokee had received any offers from potential buyers, mad the company said "no decision has been made" on whether it will go forward with any transaction.

Cherokee owns brand names that it licenses to retailers such as Target Corp. for apparel and other items. Target has the clothing designed and manufactured on its own, and pays Cherokee a fee for using its label.

Cherokee also represents other brand owners that are trying to strike similar licensing deals with large retailers. Last week, Cherokee said it signed a branding deal with the owner of Essence magazine for African American-themed health and beauty products.