Shares of Cherokee Inc. fell back to below a dollar on Wednesday, after jumping 34 percent Tuesday on news that the company had sold its Flip Flop Shops retail chain.

Cherokee (CHKE) dropped 10 cents, or nearly 10 percent, on Wednesday to close at 96 cents on the Nasdaq.

The Sherman Oaks-based apparel brand licenser sold Flip Flop Shops to footwear manufacturer Bearpaw Holdings LLC for an undisclosed amount. It plans to use the sale proceeds to pay down its long-term debt. As of February, the company was carrying $49.5 million in liabilities, according to a fourth quarter earnings report.