Grupo Aviara to License Cherokee Brand
Cherokee Inc. is heading south of the border.
The Van Nuys, Calif.–based company said it has entered a multiyear licensing agreement for its Cherokee brand with Grupo Aviara SA de CV, one of Mexico’s largest apparel companies, to produce men’s, women’s and children’s apparel, accessories and footwear.
The deal allows the Mexico City–based privately held company to produce the apparel, accessories and footwear, as well as home furnishings and recreational goods under the Cherokee label.
Grupo Aviara has similar licensing agreements with XOXO, Lacoste, Miss Sixty, Energie, Anne Klein, Fubu and the U.S. Polo Association.
The company, which employs 100 workers at its 10,000-square-foot facility, will sell the Cherokee brand through its retail distribution channels, which include chain stores Mexicana, Gigante and Soriana. Plans include an 80-store rollout for the Cherokee brand this year, the company said.
“We are thrilled to be able to partner with Cherokee in Mexico and plan to maximize this great equity, utilizing our vast network and resources,” said Grupo Aviara Chairman and Chief Executive Officer Mauricio Sacal. “Cherokee will become a significant part of our portfolio, and we look forward to its launch. The consumer in Mexico demands quality and value; Cherokee will be positioned to satisfy their needs and wants.”
Sales for the Cherokee brand in Mexico are expected to reach $10 million its first year, Sacal said.
Cherokee’s agreement with the apparel maker is unusual because the company usually licenses it brands to retailers through its retail-direct program, according to Cherokee Senior Vice President Larry Sass. Cherokee’s plan is to further additions to its Latin American base, and the deal with Grupo Aviara is a step in the right direction, Sass said.
Cherokee licenses its brands—Cherokee, Sideout, Sideout Sport, King of the Beach, Carole Little, CLII, Saint Tropez- West, Chorus Line, All that Jazz and Molly Malloy, among others—through its retaildirect program. The company has 13 licensing agreements with retailers, including Tesco and Carrefour—two of Europe’s largest retailers—and Sport Scheck. The company also has licensing agreements for apparel, accessories and footwear with retailers including the Target Corp., Marshall Field’s, Mervyn’s and The TJX Cos. Inc. in the United States; Zellers in Canada; and Shanghai Bolderway in China. —Claudia Figueroa
