Cherokee, Inc. announced Tuesday that the Los Angeles Superior Court confirmed the full award including finder’s fees withheld under the finder’s agreement, interest at the legal rate on monies previously withheld, and Cherokee’s full attorney’s costs.
It also reaffirmed the validity of the original finder’s agreement between Cherokee Inc. and Mossimo Inc., further ordering that Cherokee is entitled to receive from Mossimo 15% of all monies received by Mossimo from Target Stores pursuant to Mossimo’s licensing agreement with Target Stores dated March 28, 2000 and from any future extensions. Cherokee now plans to move to collect all monies owed to them by Mossimo under the judgment.
Cherokee said it understands that Mossimo has the right to appeal the judgment, and if they choose to do so, will be required to either pay Cherokee or post a bond for an amount one and one half times the amount of the judgment. In the event of an appeal and a posting of a bond, interest, now accruing at over $5,000 per week, will continue to accrue at the statutory rate.
Kyle Wescoat, Chief Financial Officer stated, “We are pleased that the judgment has now been entered by the Court. Although this asset continues to grow and accrue interest at a high rate, since we are not clear when we will be receiving payment, we are exploring alternatives such as the selling or insuring of this asset, which could provide us with greater current liquidity.”
