About Apex Global Brands

Apex Global Brands Inc. operates as a marketer and manager of a fashion and lifestyle brands that it owns, brands that it creates, and brands that it develops for others. The company-owned brands, which are licensed in multiple consumer product categories and retail tiers worldwide, include Cherokee, Hi-Tec, Magnum, 50 Peaks, Interceptor, Hawk Signature, Tony Hawk, Everyday California, Carole Little, Sideout and others. The company has licensing relationships with retail partners in their global locations to provide them with the rights to design, manufacture and sell products bearing its brands, and it also has licensing relationships with manufacturers and distributors for the manufacture and sale of products bearing its brands. The company earns royalties when its licensees sell licensed products bearing the trademarks that it owns, or when they sell products that it has designed and developed. As of February 1, 2020, the company had 42 continuing license agreements in approximately 144 countries. These arrangements include relationships with Walmart, Soriana, Comercial Mexicana, TJ Maxx, Tottus, Arvind, Reliance Retail, Tharanco, Martes Sports, Hi-Tec Europe, Hi-Tec South Africa, JD Sports, Black’s and Lidl, in addition to regional distributors. Licensing and Other Selling Models Direct to Retail (DTR) In DTR licensing, the company grants retailers a ‘territory’ or ‘channel-specific’ license to use its trademarks on certain categories of merchandise. The company collaborates with its licensees’ product development staff and merchandisers on design direction, packaging, marketing and other aspects pertaining to the products sold with its trademarks, and in some cases its licensees modify or expand the designs or create their own designs to suit their seasonal, regional and category needs. The company’s DTR licensing strategy is premised on the proposition that, for various retailers worldwide, various aspects of the moderately priced apparel, accessory, footwear and home categories, including product development, design, merchandising, sourcing and distribution, could be executed by these retailers themselves, who typically command significant economies of scale, but also interact daily with their end consumers. Wholesale The company also licenses its brands to manufacturers and distributors based on wholesale arrangements. Wholesale licensing arrangements involve licensing to manufacturers and distributors that produce and/or import various categories of apparel, accessories, footwear and home products under the company’s trademarks and trademarks owned by third parties and sell the licensed products to retailers, which then resell the products to consumers. The company has various new wholesale arrangements for the Cherokee, Hawk Signature and Tony Hawk brands. In addition, the company is primarily relying on a wholesale licensing strategy for global sales of its Hi-Tec, Magnum, 50 Peaks and Interceptor brands. Design Services The company provides product design and development services for retailers that prefer to sell brands that they own. Its retail partners could rely on its product development and design capabilities, which are supported by its retail and brand marketing abilities, focusing their resources instead on retail operations. Brand Portfolio Cherokee Cherokee is an American family-lifestyle brand, offering classic, casual and comfortable products. Cherokee branded products are sold internationally across multiple age ranges in a range of categories, including casual sportswear, sweaters, outerwear, active wear, dresses, denim, swimwear, sleepwear, accessories, home décor, textiles, outdoor furnishings and camping gear. The company’s wholesale distributor licenses offer various categories of products bearing the Cherokee brand to retailers in the United States. A majority of its Cherokee brand royalties are derived from multiple DTR license agreements with various retailers outside the United States. Hi-Tec, Magnum, 50 Peaks and Interceptor Hi-Tec is known for its comfortable and lightweight hiking and walking shoes, and also produces technical outdoor footwear and various other types of shoes. The Hi-Tec brand offers sports and outdoor footwear. Magnum produces work boot footwear, specific-purpose tactical boots and uniform footwear. 50 Peaks is a technical outdoor footwear brand. Interceptor is a tactical footwear brand sold internationally, with primary distribution through Walmart U.S. Hi-Tec and Magnum products are sold worldwide in Europe, the United States, Canada, South Africa, the Middle East, South and Central America, Oceania and Asia. Hawk Signature and Tony Hawk Tony Hawk is among the major athletes in skateboarding history. The Tony Hawk brand embodies the ‘skate culture’ lifestyle, combining style with performance. The Hawk Signature and Tony Hawk brands have expanded the company’s presence in the department store and specialty channels of distribution. Hawk Signature and Tony Hawk branded products are distributed to various retailers in the United States, including specialty, mid-tier, regional, mass market, off-price and club stores, by various wholesale distributors under license agreements with these distributors. In addition, the company has separate wholesale license agreements with others to supply Hawk Signature and Tony Hawk apparel in China, Japan, South Korea and throughout Europe. Everyday California Crafted in Southern California, Everyday California is designed to embody the California spirit. Everyday California offers apparel and accessories for men and women. In addition to the United States, Everyday California is distributed in Mexico and Japan. Point Cove Point Cove is created in-house by the company design team in collaboration with Reliance Trends, a chain of retail stores in India. The brand brings a combination of playfulness and sophistication to Reliance Trends stores in key categories, including apparel, accessories and footwear, for kids ages 2-14. The collection features bold colors that bring the California spirit to India. Carole Little The Carole Little brand became recognized for colorful and unusual prints, soft two-piece outfits and dresses, and has an ageless, independent attitude for the self-confident woman. Sideout The Sideout brand took root at the beach, harnessing the spirit of a casual California lifestyle. Strategy As part of its business strategy, the company also regularly evaluates other brands and trademarks for acquisition into its portfolio. Trademarks and Other Intellectual Property Rights The company holds various trademarks, including Cherokee, Hi-Tec, Magnum, 50 Peaks, Interceptor, Hawk Signature, Tony Hawk, Everyday California, Carole Little, Saint Tropez-West, Chorus Line, All That Jazz, Sideout, Sideout Sport and others for various categories of apparel and other goods. Government Regulations The company’s business practices in international markets are subject to the requirements of the U.S. Foreign Corrupt Practices Act and any applicable foreign anti-bribery laws. Competition Competing brands with respect to the company’s Cherokee brand include Polo Ralph Lauren, Tommy Hilfiger, and private label brands (developed by retailers), such as Faded Glory, Arizona and Route 66, and competing brands with respect to the Hi-Tec and Magnum brands include Columbia, Merrell, Keen, North Face, Timberland, Bates, Wolverine and other private label brands. History The company was incorporated in Delaware in 1988. It was formerly known as Cherokee Inc. and changed its name to Apex Global Brands Inc. in June 2019.