Van Nuys-based clothing brand licensing firm Cherokee Inc announced on Monday that it has bought the brands founded by skateboarding legend Tony Hawk. The acquisition of the Huntington Beach firm is valued at $19 million in cash, according to San Fernando Valley Business Journal (SFVBJ).
Chief Executive Officer Henry Stupp explained that the deal was made with bigger distribution as a goal. Last year, Cherokee has penetrated several foreign markets including Indonesia, India, and the Middle East, the report detailed.
Stupp said in a statement: "We identified the Tony Hawk brand for a variety of reasons including the opportunity to further expand into the department store and specialty channels of distribution globally."
Tony Hawk, the most well-known skateboarder in history, founded the Tony Hawk clothing line. The firm was originally acquired by Quiksilver in 2000. Locally, it is exclusively licensed to Wisconsin-based Kohl's Corp. The company sells apparel and accessories across Kohl's 1,158 physical and online outlets, said the report.
Cherokee struck a credit deal with JPMorgan Chase Bank to finance the acquisition. The Van Nuy company's portfolio includes Carole Little, Sideout, Cherokee, and Liz Lange. The firm presently holds licensing contracts in 40 countries, SFVBJ reported.
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