OTHER NEWS - Oct. 3, 1991

Apparel Maker Settles Class Action Lawsuit: Cherokee Inc. said as part of the settlement it agreed to issue $700,000 in subordinated debentures, a kind of debt security that is repaid only after more senior debts are paid. The lawsuit was filed in 1988 by shareholders who sought a higher price from an investment group, including Cherokee’s management, that made a buyout bid for the Sunland-based company. The price was eventually raised by the group, but the buyout saddled the concern with $164 million in debt. In June, Cherokee raised $15 million through an initial public offering of stock, and the company said it plans to use up to $5 million of the proceeds to make open market purchases of the debentures.