August 10, 1993 |
News that French designer Georges Marciano is resigning as chief executive of Guess? Inc., the Los Angeles-based clothing company that he and his three brothers founded, was the talk of the apparel industry last week. Perhaps especially so at Cherokee Inc., a Sunland-based maker of women's clothing that has taken Marciano's fancy. On the day reports surfaced last week that Marciano was leaving Guess?, Cherokee's stock surged 40%, to $4.38 a share, on unusually heavy trading volume.
August 3, 1993 |
Guess Inc. founder Georges Marciano, who led the jeans maker through explosive growth and a bitter legal war with rival Jordache, is resigning as Guess chairman and chief executive, Bloomberg News Service reported Monday. Marciano, 46, also is selling his 40% stake in privately held Guess back to the Los Angeles-based company for an undisclosed price, Bloomberg said. That would leave his three brothers, Maurice, Paul and Armand, as the only owners of the company.
July 27, 1993
A Chicago-based securities firm has purchased a 10.6% stake in Cherokee Inc. for investment purposes. The Scattered Corp. purchased 531,337 shares of common stock of the Sunland-based apparel manufacturer since mid-May for $401,000, according to documents filed with the Securities and Exchange Commission.
June 22, 1993 |
Georges Marciano, chairman and chief executive of Beverly Hills jeans maker Guess? Inc., has acquired a 19.9% stake in Cherokee Inc., the Sunland-based apparel company that recently emerged from bankruptcy reorganization. In a filing with the Securities and Exchange Commission, Marciano said he bought 995,000 shares of Cherokee's common stock in early June, paying $3.75 to $4.38 a share, for a total of about $4.1 million.
March 30, 1993
Creditors of Cherokee Inc. will swap much of their debt claims for 77% of the common stock of the Sunland-based apparel maker under a tentative agreement between the parties. The proposed change was expected. Cherokee had said in October that it was in restructuring talks with the creditors, and it's not uncommon for debt holders to exchange their claims for stock in order to keep a company alive.
January 19, 1993
Cherokee Inc., a struggling apparel maker based in Sunland, posted a $5.1-million loss for its fiscal second quarter, compared with a loss of $1.43 million a year earlier. The latest loss in the quarter ended Nov. 28 largely reflected interest costs on Cherokee's burdensome debt, which the company is attempting to restructure. The company's second-quarter sales dropped 26%, to $32.2 million from $43.5 million.
November 17, 1992
Control of Cherokee Inc. would shift to certain of the Sunland company's debt holders from an investor group under a tentative debt-restructuring agreement announced by the ailing apparel maker. Cherokee is struggling under the weight of $163 million of debt, most of which is in expensive "junk bonds" held mainly by institutional investors. The company missed an $8.2-million interest payment on the bonds, formally known as senior subordinated reset notes, that was due Nov. 1.
November 10, 1992
Cherokee Inc., a struggling apparel maker based in Sunland, said it failed to make an $8.2-million interest payment due on $105 million of junk bonds it has outstanding. The company previously had said it might not make the payment, which was due Nov. 1, because the payment might further deteriorate its balance sheet. Cherokee, meanwhile, is negotiating with holders of the junk bonds--known formally as senior subordinated notes that cost Cherokee 15.