VAN NUYS — Cherokee Inc. announced plans Monday to buy the worldwide rights to Sideout Sports Inc.'s trademarks and licensing agreements.
The acquisition price was not disclosed.
"I think we've demonstrated a great success in building Cherokee and want to apply the same techniques and global contacts to further develop Sideout," said Cherokee CEO Robert Margolis.
Cherokee, a 27-year-old company known for footwear and sportswear, reorganized in 1995 and terminated its manufacturing operations, dedicating itself solely to licensing its brand name.
"We decided it was more profitable for everyone to cut out the middleman," said Cherokee President Patricia Warren.
In the fiscal year ended May 31, Cherokee earned $6.7 million on just $8.7 million in revenues by renting out its name to manufacturers.
Monrovia-based Sideout is best known for men's beach apparel.
"Sideout is part of a young, happening kind of world," said Warren. "We have the opportunity as an established company to help them expand their line, using the same demographics."
Cherokee plans to expand Side- out's product portfolio to include women's and children's clothes, as well as winter sports apparel.
Steve Ascher, founder and CEO of 14-year-old Sideout, will join Cherokee's marketing department.
"We're extremely excited to grow the business with the Cherokee group and foresee a lot of exciting things in the future," said Ascher.
Sideout's Monrovia manufacturing plant will be closed, its inventory liquidated and its 26 employees laid off, said Ascher.
Cherokee has licensing agreements in many categories, including casual and active sportswear as well as women's fashion accessories, home textiles and cosmetics. Cherokee has licensing deals in Japan, South Korea, the Philippines, Canada, Greece and Cyprus and is negotiating contracts with other European countries, Warren said. Sideout is represented in Mexico, Argentina, Chile, Uruguay, Japan, Australia, Canada, and most of Europe.