Cherokee Group in Sunland Loses $1.57 Million in Quarter

Cherokee Group, a Sunland apparel company that is in the process of going private, said it lost $1.57 million in its fiscal second quarter ended Nov. 26.

Cherokee, which earned $2.28 million, or 18 cents a share, in the year-earlier period, said the loss mostly reflected $1.9 million in pretax costs that stemmed from the pending $174-million leveraged buyout of Cherokee by Green Acquisition Co., an investor group that includes some top Cherokee executives.

Cherokee’s second-quarter sales fell to $27.9 million from $33.2 million, which the company blamed on a slowdown in the apparel industry and customer uncertainty about the proposed takeover of the company. Cherokee said its orders have improved in the current quarter, however.

For the first half of its fiscal year, Cherokee’s profit tumbled to $891,000, or 7 cents a share, from $5.23 million, or 40 cents a share, a year earlier. Six-month sales climbed to $71.1 million from $68.9 million.