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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)*
CHEROKEE INC.
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(Name of Issuer)
COMMON STOCK
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(Title of Class of Securities)
16444H102
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(CUSIP Number)
Ronald P. Givner, Esq.
c/o Jeffer, Mangels, Butler & Marmaro,
2121 Avenue of the Stars, 10th Floor,
Los Angeles, California 90067 (310) 203-8080
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- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
November 1, 1996
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
NOTE: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are to
be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that Section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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SCHEDULE 13D
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CUSIP No. 164 44H-10-2 Page 2 of 6 Pages
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
THE NEWSTAR GROUP, INC. DBA THE WILSTAR GROUP
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
NOT APPLICABLE
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ]
PURSUANT TO ITEMS 2(d) or 2(e)
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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7 SOLE VOTING POWER
1,250,446 SHARES OF COMMON STOCK
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY -0-
OWNED BY ---------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,250,446 SHARES OF COMMON STOCK
PERSON ---------------------------------------------------------
WITH 10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,250,446 SHARES OF COMMON STCOK
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES [ ]
CERTAIN SHARES*
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.4%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 16444H102 Page 3 of 6 Pages
The purpose of this Amendment No. 1 to Schedule 13D is to report the
disposition by The Newstar Group, Inc. d/b/a The Wilstar Group ("Wilstar"), a
California corporation of shares of the Common Stock of Cherokee, Inc. (the
"Issuer" or the "Company").
Item 1. Security and Issuer.
Securities: Common Stock, $.02 par value ("Common Stock")
Options to acquire Common Stock ("Options")
Issuer: Cherokee Inc.
6835 Valjean Avenue
Van Nuys, California 91406
Item 2. Identity and Background
Information as to Newstar
Name: The Newstar Group, Inc.
State of Incorporation: California
Address: 6835 Valjean Avenue
Van Nuys, California 91406
Information as to Directors, Officers and Controlling Persons of Newstar
Robert Margolis Chief Executive Officer, Chairman,
Member Board of Directors
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
Chief Executive Officer, Chairman, Member of
the Board of Directors
Cherokee Inc.
6835 Valjean Avenue
Van Nuys, California 91406
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CUSIP No. 16444H102 Page 4 of 6 Pages
Barry I. Lublin President, Member Board of Directors
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
Steve Colombo Vice President, Member Board of Directors
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
Jay Kester Vice President, Member Board of Directors
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
Joel Ratner Vice President
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
Douglas Weitman President
c/o Security Textile Corp.
1457 East Washington Boulevard
Los Angeles, California 90021
Member Board of Directors
The Newstar Group
6835 Valjean Avenue
Van Nuys, California 91406
United States citizen
(d) No person or entity listed above has, during the last five
years, been convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors).
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CUSIP No. 164 44H-10-2 Page 5 of 6 Pages
(e) No person or entity listed above has, during the last five
years, been party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities
laws or finding any violation with respect to such judgment,
decree or final order.
Item 3. Source and Amount of Funds or Other Consideration.
Not Applicable.
Item 4. Purpose of Transaction.
See Item 5.
Item 5. Interest in Securities of the Issuer
On November 1, 1996 Wilstar transferred an aggregate of 874,739 shares
of Common Stock of the Company (the "Cherokee Shares") as follows:
(i) 356,730 Cherokee Shares in satisfaction of principal
and interest due on indebtedness owed to the Wilstar
shareholders. For the purposes herewith each
Cherokee Share was valued at $5 per share;
(ii) 426,259 Cherokee Shares paid as employee bonuses to
five employee/shareholders of Wilstar. These
Cherokee Shares were also valued at $5 per share; and
(iii) 91,750 Cherokee Shares issued to shareholders of
Wilstar as a Subchapter S distribution to
shareholders without payment of any consideration to
Wilstar.
The aforementioned transactions reduced Wilstar's aggregate beneficial
ownership of Cherokee Shares to 1,250,446 shares or 15.4% of the total
amount of Cherokee Shares outstanding. Said amount includes 450,446
of Cherokee Shares which are issuable upon the exercise of currently
exercisable options held by Wilstar. The total Wilstar option is for
675,670 shares. Wilstar has sole investment and dispositive power
over all the Cherokee Shares it beneficially owns.
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CUSIP No. 164 44H-10-2 Page 6 of 6 Pages
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
Newstar is party to an Option Agreement relating to the issuance of
the shares reported herein.
Item 7. Material to be Filed as Exhibits.
(a) The May 4, 1995 Revised Management Agreement between Newstar
and the Issuer, as amended on March 23, 1996, is attached as
Exhibit "A" to the original Schedule 13D.
(b) The May 4, 1995 Revised Option Agreement between Newstar and
Issuer, as amended on March 23, 1996, is attached as Exhibit
"B" to the original Schedule 13D.
Signatures
After reasonable inquiry and to the best of the undersigned's
knowledge and belief, the undersigned certifies that the information set forth
in this statement is true, complete and correct.
Dated: November 12, 1996 The Newstar Group, Inc.
By: s/ Barry Lublin
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Barry Lublin, President
