Name and Shame
Name and Shame

APEX GLOBAL BRANDS INC (FKA CHEROKEE INC) REVIEW

Complaint
#5YDOM
NameandShame Author
The Activist Accountants
4th Jan, 2021

Apex Global Brands Inc (FKA Cherokee Inc) Caught Defrauding The Public, SEC Takes Action

Apex Global Brands Inc (FKA Cherokee Inc) tried to play smart with their investors and was caught red handed by none other than U.S. Securities And Exchange Commission.


Latest SEC AAER has shocked Apex Global Brands Inc (FKA Cherokee Inc) investors who feel misled and betrayed by the company’s actions. The auditors at SEC are experts at what they do, which is catch financial frauds and this time they outdid themselves by looking into the financial statements of this company.


Even if the suspension gets lifted by the time you read this, it doesn’t guarantee that this company is trustworthy. Remember, the SEC doesn’t put suspensions on a stock until something illegal happens.


On the first glance, their financial statements might seem just fine, but the devil is in the details, and after some thorough analysis, the truth is revealed. Let’s dive deeper and take a look at the official findings:

Detailed Apex Global Brands Inc (FKA Cherokee Inc) Scam Report

1. This proceeding concerns material misstatements by Apex Global Brands Inc.2 (“Apex” or “the Company”) regarding its primary asset and only revenue source, trademarks held by the company. From at least January 2017 to April 2018 Apex materially overstated its financial statement by failing to timely recognize impairments of its trademarks. During the time of overstatement, Apex’s trademarks provided the company’s sole source of revenue of approximately $29 million to $35 million. By January 2017, three of Apex’s trademarks were impaired, but impairment charges were not recognized until February 3, 2018 when it impaired these three trademarks for a total of $34.5 million. 2. Apex’s misstatements were due to inappropriate quarterly and annual impairment assessment of the trademarks, while the Company was experiencing a series of significant setbacks in its business and industry environment, licensing business, and market valuation. Apex performed only limited qualitative impairment assessments that failed to appropriately take into account negative information indicating that the trademarks were more likely than not impaired. Such an indication would have required a quantitative assessment of value, which Apex did not perform. Apex was also aware as early as August 2016 that the values of certain of Apex’s trademarks were more likely than not materially lower than the carrying values on the Company’s books. 3. In Apex’s fiscal year 2017 annual report and three subsequent quarterly reports, the Company misreported to investors, including in an offering, significantly inflated values for its trademarks. This information was material. Investors would reasonably expect to know if a company’s major asset and revenue source was materially impaired. As a result, Apex violated the antifraud Sections 17(a)(2) and 17(a)(3) of the Securities Act. In addition, Apex violated the reporting, internal accounting controls and books and records provisions of the Exchange Act.

Next Steps For The Investors at Apex Global Brands Inc (FKA Cherokee Inc)

It is recommended that you discuss this latest disclosure with your finance advisor as this company has done plain fraud and tried to deceive its investors and stockholders alike. While the company might try to convey that this enforcement action was nothing more than a small-one-time-thing, the reality could not be further from the truth.


Be smart about your decision on whether to work with a company such as this one or not.


If you haven’t entered a contract with this company yet, then it is better to stay away, than risk associating with a possible scammer.


Whenever such disclosures are made public, companies tend to misinform their investors and the public by burying this information. This is why I posted it here at Apex Global Brands Inc (FKA Cherokee Inc)AndShame. People deserve to know the reality about these guys, especially when they so shamelessly try to hide it.

Don’t Listen To Their White Lies

To save their image and manipulate investors, companies run cold-call campaigns and advertisements after an enforcement action by the SEC. This is mainly done to distract and persuade the investors and stockholders at the company from the horrible reality.

Please do not fall for the white lies companies often tell in order to save face in such situations. From shifting blame, to calling SEC “scumbags”, company representatives will do anything and everything to keep you from changing your mind about them.


I strongly recommend that you take all your investment decisions without any external influences from the company. A logical approach, combined with experience goes a long way. Don’t let their fake smiles be the result of your monetary loss.

Share Your Opinion, Findings & Evidence

If you have helpful information about this company, then please share it in a comment. A single comment can go a long way and it will help shed more light on this case.


Adding solid evidence is possibly the most effective way to help the community see the truth about this company. Please do so by using the Evidence Box down below.


Interested in the full document? We’ve uploaded it down below!


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