by The Editors on January 8, 2009
Lately there are simply too many doom and gloom retail stories hitting to even try to keep up, so here is this morning’s round up:
And the New Year’s joy continues to roll in.
by The Editors on January 7, 2009
We received reports yesterday that Reef dropped the axe on 42 employees as the savage retail economy continues to take its toll. Reef is one of 25 brands owned by VF Corp. Some of the company’s other brands include Vans, The North Face, 7 For All Mankind, Eastpack, Jansport, Wrangler, and Eagle Creek.
In a late December 2008 interview with TransWorld Business VF Corp’s President Americas Coalition Dave Gatto said:
We all know there can be a huge up-swing when the market recovers; it’s just a matter of adjusting the business responsibly to survive the lulls and hopefully emerge a stronger, more efficient brand.
Looks like Mr. Gatto just “adjusted” the Reef business to survive this lull. Hopefully, that was enough.
by The Editors on January 7, 2009
On December 10, 2008 Blacks Leisure announced they were giving the UK distribution rights to O’Neill back to O’Neill Europe and later mentioned they would find a buyer for their 57 Freespirit and O’Neill boardsports shops. Well, according to a story in the Blacks Leisure the company was unable to find a buyer for the stores.
“The reality is in the current market people aren’t prepared to do a sensible deal,” Neil Gillis, chief executive. . . . He said the fashion of wearing clothing inspired by skateboard and surf culture appeared to have passed. Instead of selling the division, Blacks is preparing to convert the stores to its main brands at a cost of £150,000 a store or £1.5m for the first tranche to be completed this year.
Blame it on skate and surf fashions. Nice.
[Link: Financial Times]
by The Editors on January 6, 2009
Stephen Sprouse was a graffiti artist and designer who did some work with Louis Vuitton artistic director Marc Jacobs back in the day. Sprouse died in 2004 but that hasn’t stopped the fashion house from bringing out a new Stephen Sprouse collection this week. And nothing says street fashion more than a skateboard.
For the launch, the luxury goods company is also creating two limited edition pieces, which will only be available at the SoHo location: a Stephen Sprouse graffiti skateboard replete with a hard case monogram skateboard trunk, and a Stephen Sprouse “Roses” T-shirt. The company hopes to sell three graffiti skateboards with trunks for $8,250 each, and 70 T-shirts for $250 each. “I don’t expect them to last very long,” Lalonde said. “By Friday, there probably won’t be any more left.”
Then again, nothing shouts “I’m a slave to fashion” more than owning a $8,250 skateboard that comes in it’s own Louis suitcase. . . As a well-placed friend of ours said: “Sad to say, but after they sell all three boards (prob in 3 mins) they will be the second biggest skateboard company in the world next to Sector 9!”
[Link: Women’s Wear Daily]
by The Editors on January 2, 2009
Rally driving is apparently the new black skateboarding. Thanks, Ken Block. For the rest of the Subaru/DC uniform follow the jump.
[Link: The Motor Report]
by The Editors on December 31, 2008
Foursquare Outerwear has voluntarily recalled 1,300 hooded jackets after it was discovered that they could be dangerous to kids.
The jackets have a drawstring through hood which poses a strangulation hazard to children. In February 1996, CPSC issued guidelines (pdf) to help prevent children from strangling or getting entangled on the neck and waist by drawstrings in upper garments, such as jackets and sweatshirts.
No injuries have been reported.
[Link: Consumer Product Safety Commission via Washington Post]
by The Editors on December 26, 2008
In May, 2008 ESPN sued Quiksilver for copyright infringement on the letter “X,” then a month later Quiksilver sued ESPN for the same thing claiming they had been using the X since 1994. Now, according to a story in the LA Times ESPN has settled the lawsuit with Quiksilver.
Walt Disney Co.’s ESPN network settled a lawsuit by clothing maker Quiksilver Inc. over the cable channel’s logo for the international X Games competition. . . . The companies didn’t disclose the details of the settlement in papers filed jointly Monday in federal court in New York.
Wonder if the settlement included any “free advertising?”
[Link: LA Times]
by The Editors on December 22, 2008
In a letter to Stone Douglass, Chairman of Orange 21 dated December 16, 2008, and recently filed with the SEC, Spy Optic and No Fear founder Mark Simo announced his resignation from the board of directors of the company. It appears to be mostly over the Orange 21 board’s rejection of Simo’s repeated attempts to get the company to buy (or merge with) No Fear’s retail business.
I am convinced, as much as I ever have been, that real opportunities exist for enhancing shareholder value while at the same time doing right by the company’s employees and business partners. I believe that, in this radically changing environment, the merger I have proposed with No Fear Retail Stores offers the best opportunity to achieve those goals. There may be other options that the board also should consider, but the one thing this company cannot afford is to do nothing. That, unfortunately, is the course this board has chosen to take.
We’re going to guess that this came neither as a surprise nor a disappointment to the Orange 21 board. But that’s just a guess.
[Link: Edgar Online]
by The Editors on December 22, 2008
Bob McKnight, Joe Scirocco, Bruce Thomas, and Marty Samuels covered a lot of ground in last week’s conference call, but there was one topic that they didn’t go over: the rumor that Quiksilver is actively negotiating the sale of DC Shoes.
This rumor has gained momentum lately most likely because the deal seems to make sense. On the conference call DC was repeatedly spoken of as a bright spot in Quiksilver’s brand portfolio. If Quik could unload DC Shoes for somewhere in the $700 million range, that would go a long way toward covering the company’s $1 billion debt. It would also allow Quiksilver to get back to basics with its core business after spending a couple years running the whole expansion thing into the ground. Not to mention it being a relief to many DC employees who believe all their hard work is being blown by bad business decision at the mothership. It probably wouldn’t hurt the company’s stock price, either.
So far no “official word” on the sale.
by The Editors on December 21, 2008
Back in the early 80s Rainbow Sandals were the only flips any self-respecting surfer would wear. And now, almost 40 years later founder Sparky Longley is still living the dream and bringing in $12 million in profits on $37 million in sales. Not bad for a guy who still “depends on word of mouth” and a few ads in The Surfer’s Journal to spread the Rainbow message.
The LA Times rus a whole background check on the company and man and we can’t think of anyone who has done the action sports business thing more smoothly than Sparky. Click the link to check it out.
[Link: LA Times]
