Gordon Brothers Finance Company and Gordon Brothers Complete $40 Million Term Loan to Cherokee Global Brands
Financing secured by intellectual property; will refinance existing debt, fund growth
Date August 6, 2018
Gordon Brothers Finance Company and Gordon Brothers announced today that they have closed on a refinancing deal to Cherokee Global Brands (NASDAQ:CHKE). The term loan is secured by the company’s intellectual property, including the Cherokee, Hi-Tec, Magnum, Tony Hawk, Side Out and Liz Lange brands.
“We are excited to assist Cherokee in this refinancing. We have a strong conviction in the value of the company’s brand portfolio, the effectiveness of their uniquely hands-on approach to building value, and their prospects for future growth,” stated Ramez Toubassy, President of Gordon Brothers’ brands practice.
Cherokee Global Brands plans to use the loan to refinance its existing debt and increase liquidity.
“We are pleased to close on this financing, which will allow us to redouble our efforts on realizing the value in the portfolio and deliver against the opportunities ahead of us,” stated Henry Stupp, CEO & Director of Cherokee Inc. “We’re grateful for the flexibility provided by Gordon Brothers Finance Company and Gordon Brothers.”
“We have spent a lot of time in the brand space and have a great appreciation for the brand platform model Cherokee has helped pioneer. The company is in a better position to evolve the model further as a result of this refinancing,” stated Larry Klaff, Senior Managing Director, Gordon Brothers Finance Company. “We are looking forward to a long and successful relationship with Cherokee.”
Gordon Brothers specializes in valuing, acquiring, restructuring and investing in brands, to help build value. The group frequently partners with Gordon Brothers Finance Company, which specializes in asset-based term loans providing liquidity to middle-market companies against brand or other assets.
About Gordon Brothers Finance Company
Gordon Brothers Finance Company provides debt financing in the form of first and second lien secured term loans, FILO (first in, last out), DIP financing, and unitranche loans. This capital is used by borrowers to fund long-term growth, acquisition financing or to facilitate a turnaround. The main geographical focus is North America, Western Europe and Australia.
About Cherokee Global Brands
Cherokee is a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands including Cherokee®, Carole Little®, Tony Hawk® Signature Apparel and Hawk Brands®, Liz Lange®, Everyday California®, Sideout®, Hi-Tec®, Magnum®, 50 Peaks® and Interceptor, across multiple consumer product categories and retail tiers around the world. The Company currently maintains license agreements with leading retailers and manufacturers that span over 100 countries, with distribution across 20,000+ retail locations and multiple ecommerce platforms.