Cherokee diversifies with flip-flops

Licensed apparel company Cherokee Global Brand is acquiring a new retail chain just a few weeks after announcing its relationship with Target is ending.

Cherokee has acquired Flip Flop Shops, a franchise retail chain that offers the latest styles of flip flops, casual footwear and accessories. Flip Flop Shops currently has over 90 retail franchise shops in the U.S., Canada, Caribbean, Middle East and South Africa, and over 100 additional retail shops already in development worldwide. Its locations carry assortments of recognized brands including OluKai, SANUK, Cobian, Havaianas, Quiksilver, ROXY, Reef, and many more.

Cherokee CEO Henry Stupp said: "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."

Through the acquisition, Cherokee says it 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, 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.

Stupp added: "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."

In 2014, licensed revenues from the sale of the Cherokee brand at Target accounted for roughly 43% of the company’s total revenues. The agreement with Target is set to expire in 2017.