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Huntington-Beach-based company Quiksilver, which originally purchased skateboarder Tony Hawk's clothing brands in 2000, has sold the licensed clothing business to a Cherokee subsidiary for $19 million.
Huntington Beach-based Quiksilver said Monday it has sold a licensed clothing business tied to pro-skater Tony Hawk to a subsidiary of Sherman Oaks-based Cherokee Inc. for $19 million.
Quiksilver, which sells skateboard and surfing-inspired apparel, originally bought Hawk's clothing brands under Hawk Designs Inc. in 2000. Hawk Designs is exclusively licensed in the U.S. to Kohl's Corp., and Cherokee said that relationship would continue.
“We love the brand and we felt that there was a lot of opportunity to grow it in the United States with Kohl’s,” Cherokee’s CEO Henry Stupp told KPCC.
He said the company was hoping to purchase Hawk Designs almost a year ago.
Cherokee Inc.’s brands include Carole Little, Liz Lange, Sideout and its namesake. Stupp said buying Hawk Designs would allow the company to increase its outreach to young men and expand its distribution network. It would be the first time Cherokee would work with Kohl’s. Stupp said he also wants to expand Hawk Designs globally.
The sale closed on Friday. Cherokee has about 35 employees and acquisition of Huntington Beach-based Hawk Designs adds 9 more employees. Stupp said he doesn’t anticipate any job reductions. He said Cherokee plans to add jobs in Wisconsin in sales and planning.
Quiksilver said it plans to use the proceeds from the Hawk Designs sale to pay back debt and to invest in emerging markets. The company declined to name the locations it would invest in.
The company said it plans to sell and exit non-core businesses such as Hawk Designs. It is also looking to sell its majority stake in Sufdome Shop Ltd., its Moskova brand and its business under license with Maui and Sons.
In December, Quiksilver, whose brands include DC Shoes, Roxy and its namesake, reported that its fourth-quarter adjusted results and revenue missed analysts' expectations. The company reported a fourth quarter net loss of about $171 million. Sales during that period declined about 10 percent to $476 million, compared to a year earlier.
Quiksilver announced last month that it sold its snowboard subsidiary Mervin Manufacturing for $58 million.
Quiksilver stock was selling at $8.08 a share on Monday morning, down 23 cents.
Cherokee Inc.'s stock was selling at $13.86 a share mid-day Monday, down 27 cents.