LOS ANGELES — An arbitration panel has ruled in favor of Cherokee Inc. in its dispute with Mossimo Inc. over finder’s fee royalties generated by Mossimo’s licensing deal with Target.
Cherokee, which brokered the three-year contract, will recover attorneys’ fees and interest on the disputed royalties. The undisclosed sum has been held in an escrow account since April.
"We’re happy it’s over," said Cherokee chief executive Robert Margolis. "It benefits our organization and our shareholders for Mossimo to do well, so we’ll just put this behind us and go forward."
Mossimo Giannulli, ceo of Mossimo, did not return a phone call at press time.
Cherokee is entitled to a finder’s fee equal to 15 percent of Mossimo’s royalties as long as Target continues to license the Mossimo trademark. The brand has been enormously popular with Target shoppers, grossing an estimated $700 million in its first year alone.
For the first six months of the year, Cherokee received slightly over $2 million in royalties from Mossimo Inc., said Cherokee chief financial officer Kyle Westcoat.
According to Cherokee, the dispute stemmed from Mossimo Inc.’s attempts to recover fees associated with design services personally provided by Giannulli. In its second quarter filing, Cherokee countered that those services were "required to be performed under the Target license agreement."
In other news, Cherokee is actively looking for brand acquisitions, Margolis said. The Van Nuys, Calif.-based company hasn’t acquired a brand since its 1997 purchase of the Sideout trademark. This year, that business will do more than $100 million in mid-tier department stores, Margolis said.
The company recently signed a deal to represent House Beautiful in home-related licensing deals.
Margolis noted that Cherokee is closing in on international licensing deals for junior sportswear firm Hot Kiss.
"We’re presently negotiating with some very interested parties in Europe and Asia," he said.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast