Cherokee Global Brands, a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands, announced its amended credit facility.
On January 30, 2019, Cherokee entered into a second amendment to its senior secured credit facility with Gordon Brothers Finance Company to borrow an additional $5.3 million under the senior secured credit facility. A portion of the net proceeds were used to repay the $2.0 of subordinated notes that the Company entered into on December 28, 2018, and the balance will be used for general working capital purposes. With the amendment, the senior secured credit facility no longer requires that the Company raise $2.0 million of additional capital. Furthermore, this new amendment reduces from $6.0 million to $1.0 million the allowable level of junior capital the Company can raise to support operations.
“We are pleased to enter into our amended agreement with Gordon Brothers, which improves our financial flexibility and positions us to execute our strategic plan with sufficient liquidity,” commented Henry Stupp, Chief Executive Officer. “This marks an important next step towards stabilizing the Company, while supporting our global licensing partners and stakeholders. We want to thank Gordon Brothers, who have proved a strategic, like-minded investor, for their continued support and partnership.”
Stupp concluded, “We entered Fiscal 2019 with aggressive goals; namely, complete the integration of Hi-Tec, right size our operational structure, focus and align our brands, and place the Company back on solid financial footing. We are pleased to have achieved these objectives. Through the actions taken over the past several quarters, we are better positioned to realize the full potential of all brands in our portfolio with our strong leadership and best-in-class licensees and retail partners. Looking forward, our team is focused on growing our global retail distribution across the portfolio of brands we own, brands we develop and brands we create through new product introductions and expanded marketing activities.”