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Jess Ravich as Cherokee's new Board Chairman
01 Feb '11
5 min read
Henry Stupp commented, "This transition is an important milestone for Cherokee. Having the support of the board in order to pursue prudent acquisitions and growth strategies to more fully capitalize on our global platform is gratifying. Our goal is to grow the Company utilizing its financial strength, its global brand awareness, industry leading retail partners and of course, the hard work of my associates. I am most appreciative of the confidence and trust that Bobby has extended to me. I congratulate Jess and am enthusiastic that his experience and knowledge provides our company with additional resources."
Additionally, the Board of Directors has approved a separation agreement with Mr. Margolis under which his compensation for FY2012 will be accelerated and the Company will repurchase 400,000 shares of the Company's common shares from Robert Margolis in a private transaction. The price per share in the transaction is $18.15, the closing price of the Company's common stock on January 28, 2011. The Company has accepted a commitment from U.S. Bank, N.A. to provide Cherokee, Inc. with a $10,000,000 term loan facility to finance the transactions with Mr. Margolis.
Concurrently, Henry Stupp, the Company's Chief Executive Officer and Jess Ravich, the Company's Chairman, will purchase 10,000 and 50,000 common shares, respectively, directly from Mr. Margolis on the same terms as the Company. Shares purchased by the Company will reduce the number of shares outstanding, and be accretive to earnings per-share. Additional information regarding these transactions is included in a Report on Form 8-K filed concurrently with the issuance of this press release.
Lastly, Cherokee announced that its Board of Directors approved the distribution of a quarterly dividend to shareholders of $0.20 per share. The Board has decided to reduce the dividend from previous quarters in order to support its existing brands, as well as any newly acquired brands, and enable the Company to execute on its growth strategy.
The dividend will be payable on or about March 15, 2011, to shareholders of record on March 1, 2011. This dividend will represent the thirtieth (30th) consecutive quarterly dividend paid by Cherokee to its shareholders since December 2003. Including this upcoming dividend, since 1996 the Company will have paid out nearly $213 million in dividends and distributions to its shareholders.
The payment of any future dividends will be at the discretion of Cherokee's Board of Directors and will be dependent upon Cherokee's financial condition, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by Cherokee's Board of Directors.
Additionally, the Board of Directors has approved a separation agreement with Mr. Margolis under which his compensation for FY2012 will be accelerated and the Company will repurchase 400,000 shares of the Company's common shares from Robert Margolis in a private transaction. The price per share in the transaction is $18.15, the closing price of the Company's common stock on January 28, 2011. The Company has accepted a commitment from U.S. Bank, N.A. to provide Cherokee, Inc. with a $10,000,000 term loan facility to finance the transactions with Mr. Margolis.
Concurrently, Henry Stupp, the Company's Chief Executive Officer and Jess Ravich, the Company's Chairman, will purchase 10,000 and 50,000 common shares, respectively, directly from Mr. Margolis on the same terms as the Company. Shares purchased by the Company will reduce the number of shares outstanding, and be accretive to earnings per-share. Additional information regarding these transactions is included in a Report on Form 8-K filed concurrently with the issuance of this press release.
Lastly, Cherokee announced that its Board of Directors approved the distribution of a quarterly dividend to shareholders of $0.20 per share. The Board has decided to reduce the dividend from previous quarters in order to support its existing brands, as well as any newly acquired brands, and enable the Company to execute on its growth strategy.
The dividend will be payable on or about March 15, 2011, to shareholders of record on March 1, 2011. This dividend will represent the thirtieth (30th) consecutive quarterly dividend paid by Cherokee to its shareholders since December 2003. Including this upcoming dividend, since 1996 the Company will have paid out nearly $213 million in dividends and distributions to its shareholders.
The payment of any future dividends will be at the discretion of Cherokee's Board of Directors and will be dependent upon Cherokee's financial condition, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by Cherokee's Board of Directors.
Cherokee Inc
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