<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
DECEMBER 23, 1997
________________
CHEROKEE INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE FILE NO. 0-18640 95-4182437
(STATE OR OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER
OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER)
6835 VALJEAN AVENUE
VAN NUYS, CA 91406
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(818) 908-9868 EXT. 309
(REGISTRANT'S TELEPHONE NUMBER)
___________________________
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ITEM 5. OTHER EVENTS
Cherokee Inc. ("Cherokee") announced today that it has declared a cash
distribution of $5.50 per share on its Common Stock, payable on or shortly after
January 15, 1998. The Company will pay the distribution to stockholders of
record as of the close of business on January 2, 1998. Some small portion of
the distribution will generally be taxable as ordinary income to the extent of
the Company's earnings and profits in the current fiscal year. The amount of
the distribution which exceeds the Company's earnings and profits in the current
fiscal year will generally qualify as a return of capital to the extent of each
stockholder's individual tax basis, and any amount in excess of basis will
generally be taxable as gain from the sale of stock.
The distribution will be paid from the proceeds of a recently completed
$48.0 million securitization transaction. In the transaction, Cherokee assigned
its rights under its licensing agreement with Dayton Hudson's Target Stores to a
newly-formed limited liability corporation, which in turn pledged the licensing
agreement as collateral for notes issued in a private offering.
ITEM 7. EXHIBITS
99.1 Press Release dated December 23, 1997.
ITEM 8. CHANGE IN FISCAL YEAR
On December 19, 1997, Cherokee determined to change its fiscal year to a 52
or 53 week fiscal year ending on the Saturday nearest to January 31. Prior to
this change, Cherokee's fiscal year was a 52 or 53 week fiscal year ending on
the Saturday nearest to May 31. As a result of this change, the last day of
Cherokee's current fiscal year will be January 31, 1998. Cherokee will file
information regarding the transition period in its Annual Report on Form 10-K
for the fiscal year ending January 31, 1998.
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SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
CHEROKEE INC.
By: /s/ Carol Gratzke
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Carol Gratzke
Chief Financial Officer
Date: December 29, 1997
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Sequentially
No. Description Numbered Page
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<C> <S> <C>
99.1 Press Release dated December 23, 1997.
</TABLE>
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EXHIBIT 99.1
NEWS RE:
BULLETIN
CHEROKEE INC.
FROM: 6835 Valjean Avenue
The Financial Relations Board, Inc. Van Nuys, CA 91406
For further information: (818) 908-9868
TRADED: NASDAQ: CHKE
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
CAROL GRATZKE MOIRA CONLON
CHIEF FINANCIAL OFFICER ANALYST CONTACT
(818) 908-9868 (310) 442-0599
DANIEL SAKS OR HARIS TAJYAR
GENERAL INFO.
(310) 442-0599
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FOR IMMEDIATE RELEASE
DECEMBER 23, 1997
CHEROKEE DECLARES $5.50 CASH DISTRIBUTION
COMPLETES $48.0 MILLION SECURITIZATION
CHANGES FISCAL YEAR END
VAN NUYS, CA-DECEMBER 23, 1997-CHEROKEE INC., (NASDAQ: CHKE) announced today
that is has declared a cash distribution (the "distribution") of $5.50 per share
on its Common Stock, payable at or shortly after January 15, 1998. The Company
will pay the distribution to stockholders of record as of the close of business
on January 2, 1998. Some small portion of the distribution will generally be
taxable as ordinary income to the extent of the Company's earnings and profits
in the current fiscal year. The amount of the distribution which exceeds the
Company's earnings and profits in the current fiscal year will generally qualify
as a return of capital to the extent of each stockholder's individual tax basis,
and any amount in excess of basis will generally be taxable as gain from the
sale of stock.
The distribution will be paid from the proceeds of a recently completed $48.0
million securitization transaction. In the transaction, Cherokee assigned its
rights under its licensing agreement with Dayton Hudson's Target Stores to a
newly-formed limited liability corporation, which in turn pledged the licensing
agreement as collateral for notes issued in a private offering.
Cherokee also announced that is will change its fiscal year to a 52 or 53 week
fiscal year ending on the Saturday nearest January 31, to be more consistent
with other companies in the apparel industry. Cherokee's previous fiscal year
consisted of the 52 or 53 week period ending on the Saturday nearest May 31. As
a result, the last day of the Company's current fiscal year will be January 31,
1998.
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Cherokee Inc.
Page 2
Cherokee Inc., based in Van Nuys, Calif., is a world wide marketer and licensor
of brand products, including Cherokee, Sideout, King of the Beach, A-Smile,
American Legends and Pacific Express. Cherokee currently has licensing
agreements in many categories, including family apparel, fashion accessories,
home textiles including linens, as well as luggage, cosmetics and footwear.
For more information on Cherokee Inc. by facsimile at no cost,
Call 1-800-PRO-INFO and enter company code CHKE
