CHEROKEE INC. (NASDAQ:CHKE) Files An 8-K Other Events

ME Staff 8-k
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CHEROKEE INC. (NASDAQ:CHKE) Files An 8-K Other Events
Item 8.01Other Information.

Extension of Forbearance. As previously disclosed, on June27, 2017, Cherokee, Inc. (the“Company”) obtained a forbearance from Cerberus Business Finance, LLC (“Cerberus”) regarding the Company’s failure to comply with certain covenants set forth in the Company’s senior secured credit facility with Cerberus (the“Cerberus Credit Facility”). to the forbearance, Cerberus agreed that it would not exercise its rights or remedies under the Cerberus Credit Facility solely with respect to these events of default through July7, 2017, which was subsequently extended through July14, 2017, July28, 2017 and August4, 2017. The Company has now obtained a further extension of the forbearance through August11, 2017. The Company is in discussions with Cerberus to obtain a waiver of the events of default and an amendment of certain terms of the Cerberus Credit Facility during the forbearance period. However, there can be no assurance that such a waiver and amendment will be obtained, or if it is obtained, that such waiver and amendment will be obtained during the forbearance period or on terms favorable to the Company. Any failure to obtain such a waiver or amendment within the forbearance period would subject the Company to significant risks, including Cerberus’s right to terminate its obligations under the Cerberus Credit Facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries assets that serve as collateral for the borrowed amounts.


About CHEROKEE INC. (NASDAQ:CHKE)

Cherokee Inc. is a marketer and manager of a portfolio of fashion and lifestyle brands it owns or represents, licensing the Cherokee, Liz Lange, Completely Me by Liz Lange, Hawk, Tony Hawk, Sideout, Carole Little, Everyday California , Flip Flop Shops and ale by alessandra brands and related brands in various consumer product categories and sectors. The Company operates in the segment of marketing and licensing of brand names and trademarks for apparel, footwear and accessories. It is a licensor of style focused lifestyle brands for apparel, footwear, home products and accessories. It performs a range of services, including marketing, solicitation of licensees, contract negotiations and administration and maintenance of license or distribution agreements, among others. It operates in the United States, Canada, Latin America, Asia, the United Kingdom and Europe. Its brands are licensed with retail and wholesale licensees in over 50 countries and approximately 9,000 retail locations.