SHERMAN OAKS, Calif., Oct. 19, 2015 (GLOBE NEWSWIRE) Cherokee Global Brands (NASDAQ:CHKE), a global marketer of style focused lifestyle brands, announced today that it has acquired Flip Flop Shops®, a leading franchise retail chain dedicated to offering the hottest brands and latest styles of flip flops, casual footwear and accessories.
Flip Flop Shops currently has over 90 retail franchise shops in the US, Canada, Caribbean, Middle East and South Africa, and over 100 additional retail shops already in development worldwide. Its locations carry definitive assortments of recognized brands including OluKai, SANUK, Cobian, Havaianas, Quiksilver, ROXY, Reef, and many more. Through the acquisition, Cherokee Global Brands will continue adding new franchises as it expands Flip Flop Shop's assortments of flip flops, casual footwear and accessories by offering new brands from its portfolio through its proprietary 360◦ platform including, Cherokee®, Tony Hawk®, and Everyday California®. Flip Flop Shop's franchise model allows it to showcase its diverse portfolio of brands in an immersive retail environment that engages customers of all ages in new and exciting ways.
The acquisition of Flip Flop Shops aligns perfectly with the Company's strategic plan and is consistent with its zero inventory, no manufacturing risk business model. As part of its growth strategy for Flip Flop Shops, Cherokee Global Brands will identify key partners through its relationships in Europe, Asia, and Latin America and expand the retail concept and offerings through a combination of retail stores, shopinshops and mobile commerce in all existing and new markets. Mr. Stupp commented, "We are very excited about adding Flip Flop Shops to our global brand portfolio. It's not often you come across such a rare combination of a seasoned leadership team, perfect portfolio alignment and seamless integration with our unique business model. Our goal has always been to become the global leader in marketing, selling and distributing a balanced portfolio of brands. Through our acquisition of Flip Flop Shops, we will join the ranks of innovative specialty retailers that successfully operate similar concepts focused on products such as sunglasses and baseball hats." Mr. Stupp continued, "Our mantra, 'think like a retailer', has guided our business since inception. With the acquisition of Flip Flop Shops, we now have the opportunity to 'act like a retailer' and expand our direct relationships with consumers in the process. We believe Flip Flop Shops will soon become the most recognized retail brand for flip flops and casual footwear in the world." Brian Curin, the President and Flip Flop Enthusiast of Flip Flop Shops commented, "This is a very exciting time for Flip Flop Shops. We look forward to joining forces with the Cherokee Global Brands team and leveraging their expertise. Their ability to quickly build scale will be particularly beneficial as we roll out new shops and establish Flip Flop Shops as a globallyrecognized specialty retailer." Symphony Investment Partners acted as the exclusive financial advisor to Cherokee Global Brands. Christopher Spahr of Meadow Lane Capital LLC led the team that advised Flip Flop Shops in the transaction.