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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: January 24, 2000
(Date of earliest event reported)
CHEROKEE INC.
(exact name of registrant as specified in its charter)
Delaware Commission File: 95-4182437
(State or other jurisdiction 0-18640 (I.R.S. Employer
of incorporation or Identification No.)
organization)
6835 Valjean Avenue
Van Nuys, California 91406
(Address of Principal executive offices, including zip code)
(818) 908-9868
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
Cherokee Inc. hereby incorporates by reference its press release dated
January 24, 2000, a copy of which is included as Exhibit 99.1 attached hereto.
* * * * *
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ITEM 7. FINANCIAL STATEMENT AND EXHIBITS
Exhibit
No. Description
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99.1 Press Release dated January 24, 2000
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SIGNATURES
Pursuant to the requirements of the Securities 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.
Date: January 25, 2000 By /s/ Carol Gratzke
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Name: Carol Gratzke
Title: Chief Financial Officer
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EXHIBIT INDEX
Sequentially
Exhibit Numbered
No. Description Page
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99.1 Press Release dated January 24, 2000
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EXHIBIT 99.1
Cherokee Inc. Coffin Communications Group
6835 Valjean Ave. 15300 Ventura Boulevard,
Van Nuys, CA 91406 Suite 303
(818) 908-9868 Sherman Oaks, CA 91403
Contact: Carol Gratzke, Chief Financial Officer (818) 789-0100
Contact: Martin Halsall,
Account Principal
For Immediate Release:
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Stockholders Approve Sections 3.2 and 3.3 of the Revised Management
Agreement and the Performance Goals Contained Therein.
VAN NUYS, California, January 24, 2000--Cherokee Inc. (Nasdaq: CHKE) one of the
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leading licensors of brand names for apparel, footwear and accessories, today
reported that its stockholders had approved, by written consent, Sections 3.2
and 3.3 of the of the Second Revised and Restated Management Agreement between
The Newstar Group, d/b/a The Wilstar Group and Cherokee (the "Revised Management
Agreement") and the performance goals contained therein. As described in the
Consent Solicitation Statement previously mailed to stockholders, the Revised
Management Agreement was entered into at the end of 1999 and it provides, among
other things, that the Company will continue to have the services of Robert
Margolis as CEO until at least February 2002.
Since joining Cherokee Inc. in May 1995, Mr. Margolis and his management team
have successfully improved the Company's earnings per share from a loss of
($0.22) for the fiscal period ended June 1, 1996 to $0.78 for the third quarter
ended October 30, 1999. The Company has experienced thirteen consecutive
quarters of revenue and EBIT growth. Under the terms of the prior management
agreement, continued growth could have had significant negative tax implications
for the Company. Therefore, Sections 3.2 and 3.3 of the Revised Management
Agreement, which provide for the payment of performance bonuses and other
compensation to The Wilstar Group and Robert Margolis if the performance goals
set forth in such sections are achieved, were submitted to Cherokee's
stockholders for approval so that compensation paid thereunder may be tax-
deductible by Cherokee for federal income tax purposes.
Consent cards representing 55% of the total issued and outstanding Cherokee
common stock were finally tabulated on January 20, 2000. Holders on the record
date of shares representing approximately 52% of the issued and outstanding
Cherokee common stock, which is 94.5% of the total shares voted, had delivered
unrevoked consents approving Sections 3.2 and 3.3 of the Revised Management
Agreement and the performance goals contained therein.
Cherokee, Inc., based in Van Nuys, California, is a marketer and licensor of
Cherokee and Sideout brand products, is continuing its negotiations for domestic
and international licensing contracts covering multiple categories of
merchandise. Cherokee currently has licensing agreements in many categories,
including family apparel, fashion accessories, as well as luggage, cosmetics and
footwear.
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