SHERMAN OAKS, Calif., April 12, 2017 (GLOBE NEWSWIRE) -- Cherokee Global Brands (NASDAQ:CHKE), a global brand marketing platform that manages a growing portfolio of fashion and lifestyle brands, today announced that it will file with the U.S. Securities and Exchange Commission for an automatic 15-day extension of the deadline for submitting its Annual Report on Form 10-K for its fiscal year ended January 31, 2017 (the "Form 10-K").
Although the company believes that its financial statements are substantially complete, the financial statements are required to include the financial results of the assets acquired from Hi-Tec Sports International Holdings B.V. (“Hi-Tec”), which closed on December 7, 2016, and the associated transactions. The complexity of this integration and consolidation has necessitated substantial additional review procedures and staff work. As a result, the company needs more time to complete its review of the consolidated financial statements including the Hi-Tec assets.
The company is working diligently on this matter and currently expects to file the Form 10-K on or before the extended deadline of April 28, 2017. The company also anticipates that it will host a conference call to discuss its financial results substantially concurrently with the filing of the Form 10-K.
About Cherokee Inc.
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®, Interceptor® and Flip Flop Shops®, a leading franchise retail chain, across multiple consumer product categories and retail tiers around the world. The Company currently maintains license and franchise agreements with leading retailers and manufacturers that span over 110 countries in 12,000 retail locations and digital commerce.
Safe Harbor Statement
This news release contains forward-looking statements regarding future events and the future performance of Cherokee. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and is based on currently available market, operating, financial and competitive information and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected or projected, including, among others, risks that: the consolidated financial statements will not be completed on the timeline expected; the results actually reported upon completion of the financial statement will be materially different from anticipated results; the Nasdaq will issue a delisting letter as a result of the delayed filing; the expected benefits of the Hi-Tec Acquisition may not be realized; further delays in completion of the financial statements may cause the Company’s lenders may declare an event of default and exercise their rights against the collateral; global economic conditions the financial condition of the apparel and retail industry and/or adverse changes in licensee or consumer acceptance of products bearing the Company’s brands may lead to reduced royalties; the ability and/or commitment of the Company’s licensees to design, manufacture and market Cherokee®, Carole Little®, Tony Hawk® and Hawk Brands®, Liz Lange®, Everyday California® and Sideout® branded products could cause our results to differ from our anticipations; the Company’s dependence on a select group of licensees for most of the Company’s revenues makes us susceptible to changes in those organizations; and the Company’s dependence on its key management personnel could leave us exposed to disruption on any termination of service. The risks included here are not exhaustive. Other risks and uncertainties are described in our annual report on Form 10-K filed on April 14, 2016, its periodic reports on Forms 10-Q and 8-K, and subsequent filings with the SEC we make from time to time, including the preliminary prospectus supplement that we filed in connection with the offering described herein. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.