Cherokee Reaches Licensing Agreement

Cherokee Inc. in Van Nuys said it has completed a licensing agreement between Mossimo Inc. and Target Corp. According to the licensing agreement, Mossimo will contribute design services and license the Mossimo trademark to Target in the U.S., in return for royalties with substantial guaranteed minimum payments. Although specifics of the deal were not disclosed, the three-year sales guarantee beginning February 2001 is $1 billion.

Cherokee is a marketer, licensor and manager of a variety of brands it owns or represents.