Cherokee Inc. (NASDAQ: CHKE), a global brand management company, is pleased to announce today the exclusive partnership with Magnit as part of the Company’s rapid global growth initiative. Founded in 1994, Magnit is the leading retailer in Russia with retail sales in excess of $11.5 billion. As of this past month, Magnit operates 5,047 convenience stores, 93 hypermarkets and 240 cosmetics stores throughout Russia and is continuing to expand aggressively, having increased its selling space by nearly 40% in 2011. In 2011, Magnit also saw sales increases of 47%.
Outside of Magnit Stores (Photo: Business Wire)Cherokee-branded products recently launched in Magnit stores throughout the country include apparel for men, women, boys and girls. The unveiling of Cherokee’s collection at Magnit was accompanied by a fully-integrated marketing campaign including in-store monitors, national television ads, billboards across 25 cities, advertisements in local press, catalogs and leaflets. Both Cherokee and Magnit are looking forward to a very successful partnership. Cherokee Group CEO Henry Stupp commented, “I would like to express my special thanks to the hard-working Cherokee team members who have cultivated this relationship and collaborated with Magnit to initiate a successful partnership. With nearly two decades of proven success, we are confident that Magnit will be an exceptional brand partner as we continue on our path toward further global expansion. Cherokee’s commitment to long -range strategic planning, quality product design and affordability, along with Magnit’s compelling growth will propel our product offerings to the forefront of the Russian retail landscape." Svetlana Mirgorodskaya, Purchasing Director Non-Food Retail Chain for Magnit, added, “Our partnership with Cherokee comes at the perfect time for Magnit stores. As part of our 2012 plan to invest in our current stores and open new stores throughout the country, we feel strongly that the Cherokee brand will support Magnit in our growth strategy and mission to deliver our customers high quality apparel and accessories at reasonable prices. The Cherokee brand is the premier classic American family brand, and we are very pleased to begin a new partnership together. ”
About Cherokee Inc.Cherokee Inc. is a global marketer and manager of a portfolio of Fashion and Lifestyle brands it owns and represents in multiple consumer product categories and sectors around the world. The Company has license agreements with premier retailers and manufacturers covering over 30 countries around the world including Target Stores (U.S.), Tesco (U.K., Ireland and certain Central European countries), Zellers (Canada), RT-Mart (Peoples Republic of China), Pick ‘n Pay (South Africa), Falabella (Chile, Peru and Colombia), Arvind Mills (India and certain Middle Eastern countries), Shufersal LTD. (Israel), Comercial Mexicana (Mexico), Eroski (Spain), Nishimatsuya (Japan), Magnit (Russia) and the TJX Companies (U.S., Canada and Europe). 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 potential future business development and the anticipated credit facility) 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, the effect 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, Sideout and Carole Little branded products, the Company’s dependence on a select group of licensees for 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 for Fiscal Year 2011, 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. Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50209399&lang=en