Robert Margolis is walking away from Cherokee Inc. after two decades, but he’s hardly doing so empty-handed.
His separation agreement and private sales of stock to the company and his two successors, chief executive officer Henry Stupp and non-executive chairman Jess Ravich, stand to add more than $10.5 million to his worth, according to documents filed with the Securities and Exchange Commission Monday.
Margolis has stepped down as executive chairman and a director of Cherokee. He relinquished the post of ceo in August and was succeeded in that role by Stupp. Ravich, a managing director at investment banking firm Houlihan Lokey and a Cherokee director since 1995, will replace him as chairman but on a non-executive basis.
The separation agreement with Margolis calls for him to receive $2.26 million, the sum of his base salary and the performance bonus to which he would have been entitled had he served with the company through next January. Options to purchase up to 100,000 shares of Cherokee common stock will become fully vested and exercisable.
Additionally, Cherokee will repurchase 400,000 shares of common stock from Margolis at a price of $18.15 a share, its closing price on Friday, for $7.26 million.
To fund the stock repurchase and separation costs, Cherokee has negotiated a term loan of $10 million from U.S. Bank secured by the firm’s assets.
Margolis will also sell 10,000 shares to Stupp and 50,000 shares to Ravich for $18.15 a share, or a total of about $1.1 million.
According to a Dec. 9 filing with the SEC, Margolis owns more than 743,000 shares of Cherokee in addition to 135,000 held indirectly through The Wilstar Group. The repurchase and sale of the shares to Cherokee, Stupp and Ravich would reduce his holdings to about 418,000 shares, about 4.7 percent of those outstanding.
Also Monday, Cherokee cut its quarterly dividend to 20 cents a share. It was reduced to 38 cents from 50 cents a year ago.
Supermodel @helenachristensen teamed up with longtime friend and designer @camillastaerk on a joint @paredeyewear collaboration. The lineup features three styles and 11 offerings, all of which embody a vintage feel. Get all the details on how they celebrated the collab on WWD.com. #wwdaccessories #wwdeye (📷: @slovekinpics)
“It’s a hard industry to keep motivated, as well, so finding different subjects and people is what makes it worth it – when you’re like, oh, I’ve met great people, I feel like I’ve done something good, and I feel proud of having done this,” said French actress Stacy Martin on being grateful for the variety of roles she’s take on. Read @ktauer’s full interview with Martin on her her latest film “Godard Mon Amour.” #wwdeye (📷: @danieldorsa)
After showing in front of the Eiffel Tower for his last two women’s ready-to-wear collection, it looks like @anthonyvaccarello may be heading to the Big Apple. Sources say the designer will stage his next @ysl show in NYC on June 6. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion