CHKE is now running the Hi-Tec brand strictly as on a licensed royalty model, and International Brand Group led by Ed van Wezel has taken over the legacy Hi-Tec distribution business in Latin America, Asia Pacific and Eastern Europe. The transition has enabled Cherokee to reduce headcount by 60% and lower costs considerably. But the licensing company warned that it was in breach of lending covenants, was running out of liquidity, and may not be able to remain in business unless it can negotiate better terms.

Cherokee had a net loss of $45,585,000 in Q4 ended ... Log in to view full article.