San Fernando Business Journal
Scott Stanton, a partner in Morrison & Foerster’s Corporate Group who has been Cherokee Global Brands’ outside corporate counsel since 2005, was quoted regarding Cherokee’s acquisition of Hi-Tec Sports in the article, “Cherokee Tries Buy-Sell Style” published by San Fernando Business Journal on December 12, 2016.
“The challenge was that Hi-Tec was sort of a ‘soup-to-nuts’ footwear maker,” Mr. Stanton explained. “They designed and manufactured the product, had it sold in different places – they did everything.”
“When we looked at the Hi-Tec brand next to the other brands (in Cherokee’s portfolio), we thought, ‘Wow, that would really go with what we do,’” Mr. Stanton said. “But Cherokee holds intellectual property, which it licenses out to retailers and wholesalers. It never holds inventory and doesn’t sell products directly at all.”
“One challenge ahead will be to take a brand that has been particularly strong in Europe and the U.K. and build it here in the U.S. and other parts of the world,” Mr. Stanton said. “It’s not a new brand in the U.S., but there’s a real opportunity to grow it tremendously and then take it elsewhere.”
“I think this acquisition proves Cherokee is able to execute even the most complicated deal when there’s value to be unlocked,” Mr. Stanton said. “It really validates Cherokee as a company that can conclude complex, value-creating transactions.”