Cherokee, Target Reach New Licensing Accord

Cherokee Inc. said that it has reached a broader product licensing agreement with Dayton Hudson’s Target retail stores that would last until 2004.

Cherokee, with headquarters in Van Nuys, is a licenser of clothing, shoes, luggage and other items.

The deal with Target allows the discount retailer to use the Cherokee brand name on a broad range of merchandise including men’s, women’s and children’s clothing and shoes, and various cosmetics and home textiles.

Cherokee also said that it hired Libra Investments Inc. to advise it in a possible sale or financial recapitalization of the company.

Cherokee’s board said that it will study a possible leveraged recapitalization whereby the company might borrow $50 million so it could pay an extraordinary dividend of $5.50 per share.