Cherokee Inc. Announces Acquisition of the "Tony Hawk®" and "Hawk®" Signature Apparel Brands and Related Trademarks from

  Cherokee Inc. Announces Acquisition of the "Tony Hawk®" and "Hawk®"
  Signature Apparel Brands and Related Trademarks from Quiksilver, Inc.

Business Wire

SHERMAN OAKS, Calif. -- January 13, 2014

Cherokee Inc. (NASDAQ:CHKE), a global marketer of style-focused lifestyle
brands, announced today that it has acquired the worldwide Tony Hawk® and
Hawk®  signature apparel brands from Quiksilver, Inc. for an all-cash purchase
price of $19 million. The acquisition closed on January 10, 2014.

Tony Hawk, the most dominant athlete in skateboarding history, is the founder
of Tony Hawk clothing which was originally sold to Quiksilver, Inc. in 2000.
The brand was, and will continue to be, exclusively licensed in the United
States to Kohl’s Corporation with Tony Hawk clothing and accessories sold in
1,158 Kohl’s Department Stores and online.

Hawk was ranked the number-one vertical ramp skateboarder in the world every
year from 1984 to 1996 and is best known for completing the first documented
900-degree aerial spin at the 1999 X Games. Over the past 12 years, the Tony
Hawk Foundation has donated over $4.6 million to help create 537 skateparks
throughout the U.S. Hawk continues to be the most prominent athlete bridging
action sports with the consumer market, solidifying his legacy as the
“Original Innovator” promoting “board” culture worldwide.

Tony Hawk commented on the recent acquisition, "I’ve been working closely with
the Cherokee team and will continue to be actively involved in the brand’s
development, connecting with fans and action sports enthusiasts worldwide. I
am very excited to be working with Cherokee and to continue the line’s
successful relationship with Kohl’s while expanding our relationships
globally."

“The acquisition of the Tony Hawk signature apparel brand is a great way to
start the New Year for Cherokee,” Henry Stupp, Cherokee’s Chief Executive
Officer, noted. “This is Cherokee’s third strategic acquisition in just over a
year. We identified the Tony Hawk brand for a variety of reasons including the
opportunity to further expand into the department store and specialty channels
of distribution globally. We expect the transaction to be immediately
accretive and look forward to continuing to execute our long-term growth plan
that seeks additional new markets for our existing brands; expands our product
offerings with our current partners; and identifies additional lifestyle
brands to add to our portfolio.”

Mr. Stupp continued, “The Tony Hawk brand fits perfectly into our strategy for
the globalization of brands much like we have done for our namesake Cherokee
brand and most recently with Liz Lange Maternity. We’d like to welcome Tony
and his over 5 million Facebook fans (https://www.facebook.com/TonyHawk), his
more than 3.5 million Twitter followers (https://twitter.com/tonyhawk), his
YouTube fans with over 20 million views (http://www.youtube.com/tonyhawk) and
his more than 1 million Instagram followers (http://instagram.com/tonyhawk) to
the Cherokee family of brands. We look forward to much success together.”

Financo acted as exclusive financial advisor to Cherokee Inc. in the
transaction.

On January 10, 2014 in connection with the acquisition, Cherokee and JPMorgan
Chase Bank entered into a credit agreement to finance the purchase of the Tony
Hawk® and Hawk® signature apparel brands. The Company intends to file a
Current Report on Form 8-K with the Securities and Exchange Commission with
additional information regarding the terms of the acquisition, the agreement
with Kohl’s and the credit agreement.

AboutCherokee Inc.

Cherokee Inc.is a global marketer and manager of a portfolio of Fashion and
Lifestyle brands including Cherokee^®,Carole Little^®,Liz Lange^®and
Sideout^®, in multiple consumer product categories and sectors around the
world. The Company has license agreements with premier retailers and
manufacturers covering over 40 countries around the world including Target
Stores (U.S. andCanada),Tesco(U.K., Irelandand certain Central European
countries), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa),
Falabella (Chile,PeruandColombia),Arvind Mills(Indiaand certain Middle
Eastern countries),Shufersal LTD.(Israel), Comercial Mexicana (Mexico),
Eroski (Spain), Nishimatsuya (Japan),Magnit(Russia), Landmark Group’sMax
Stores(certainMiddle EastandNorth Africacountries), and theTJX Companies
(U.S.,CanadaandEurope).

Statements included within this news release may contain forward-looking
statements for purposes of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995. When used, the words “anticipates,” “believes,”
“expects,”“may,” “should,” and similar expressions are intended to identify
such forward-looking statements.Forward-looking statements included in this
press release (including, without limitation, express or implied statements
regarding the financial impact of the acquisition of the Hawk brand and
related assets) involve known and unknown risk 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,theeffect of global economic
conditions, the financial condition of the apparel and retail industry,
adverse changes in licensee or consumer acceptance of products bearing the
Company’s brands, the ability and/or commitment of the Company’s licensees to
design, manufacture and market Cherokee, Liz Lange, Completely Me, Tony Hawk,
Sideout andCarole Littlebranded products, the Company’s dependence
onTargetfor most of the Company’s revenues and the Company’s dependence on
its key management personnel.The risks included here are not exhaustive. 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/A for Fiscal Year
2013, and in its periodic reports on Forms 10-Q and 8-K. Given these risks and
uncertainties, you should not place undue reliance on forward-looking
statements as a prediction of actual results. The Company disclaims any intent
or obligation to update any of the forward-looking statements contained herein
to reflect future events and developments.

Contact:

Cherokee Inc.
Jason Boling, 818-908-9868
CFO
or
Investor Relations Inquiries:
Addo Communications
Kimberly Esterkin or Andrew Greenebaum, 310-829-5400
or
Kohl’s Department Stores
Jen Johnson, 262-703-5241
Director of Public Relations
jen.johnson@kohls.com
or
Media Inquiries Re: Tony Hawk
Sarah Hall Productions
Sarah Hall, 212-529-1598
President
 
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