After nearly a decade of losing money Pacific Sunwear of California has finally filed for bankruptcy protection according to a story on Reuters.com.
Citing “significant and unusual trading,” lawyers for the retailer asked a judge to restrict trading on Thursday due to concerns that a significant change in ownership could impair its ability to use tax benefits on operating losses down the road. . . Founded in 1982 as a surf shop, PacSun has posted an annual net loss since the financial crisis hit in 2008.
In what has become standard practice, the company is hoping to hand off all its debt then go private with Golden Gate Capital where the new owners can run the whole game over again in a portfolio that includes Eddie Bauer, California Pizza Kitchen, Red Lobster, and J.Jill.
PowderJet is rolling to Portland, Oregon for what they’re calling “a hot weekend of snowboard shaping” and they’d like to help you build yer own snowboard, April 23-24, 2016.
The class costs $795 and you walk away with your own, hand-shaped PowderJet snowboard. If you’re down, then you need to sign up by Friday March 25, 2016 because classes fill up fast. For more info (and to sign up) please click the link.
In what could be called the “Day before St. Paddy’s Day Massacre” the Burton Corporation reportedly cut 4 percent of their 900 member global workforce on Wednesday, March 16, 2016 according to a story on Yobeat.com.
Burton President John Lacy framed it this way in a memo to the company’s remaining employees:
What that really means is that we had to let some good people go. Friends and colleagues were affected in every area of our business, and in multiple regions, and it isn’t easy to say goodbye. We’ve now talked directly with everyone affected by these changes, and our HR team is working with each of them to provide full service support during this transition. These decisions are not easy nor are they taken lightly. Please know we will be doing everything we can to help ensure these individuals have the tools and backing they need to take on this next chapter.
According to the post cuts include “multiple key sales roles, such as sales director for Anon/Analog, the women’s brand manager and some product developers.” We also hear the Burton LA store will be closing soon and the NYC store will move to a more economical location. For the entire letter from the president, please click the link to Yobeat.
Kering, the monstrous French fashion company that still owns Volcom, announced yesterday (March 16, 2016) that they have unloaded the Electric brand to CEO Eric Crane and his management team.
The transaction, which is effective today, includes all the assets of Electric and the rights attached to the brand. . . Electric, a Californian premium sports and lifestyle brand that sells accessories including sunglasses, goggles and watches, was acquired by Volcom in 2008.
That’s probably the best route to freedom for everyone involved. For the official, though vague, word from Kering, please follow the jump. If you pay for the executive edition of that shopping eating blog, you can get a little more info from Mr. Crane, via Tiffany right here. Or get an even better version for free at Tea-Dub Business.
According to a story in the Sydney Morning Herald, Rip Curl made at least some of their 2015 snowboard outerwear in North Korea, a country known for using slave labor in manufacturing. Of course Rip Curl didn’t mention it until after it was pointed out to them by Fairfax Media. Now the surf wear company is doing everything they can to blame it on their China based contractors.
After Fairfax Media sent Rip Curl photos of its garments being made in North Korea, the company’s chief financial officer Tony Roberts released a statement that said the firm “takes its social compliance obligations seriously. . .We were aware of this issue, which related to our Winter 2015 Mountain-wear range, but only became aware of it after the production was complete and had been shipped to our retail customers. . . This was a case of a supplier diverting part of their production order to an unauthorised subcontractor, with the production done from an unauthorised factory, in an unauthorised country, without our knowledge or consent, in clear breach of our supplier terms and policies.”
Hey, you can’t keep those margins in check without cutting production costs, right? In other news, Kim Jong-un may be getting the boot from his own country for a failing economy.
Surprise, it appears another snowboard magazine is no longer in the magazine business.
But don’t think for a minute that the revenue generating team behind Snowboard Mag is going to simply stop the presses, pack up their old “books”, and quit depositing checks, no, no, no. There are still dollars to be collected from the snow biz, apparently. That’s why Storm Mountain Media is going to “focus on digital, social, and custom content formats” you know, to get more in line with the kids.
SNOWBOARD currently has the most print subscribers in the snowboarding industry. But these print numbers are dwarfed by SNOWBOARD’s digital and social channels that reach more than 6 million enthusiasts every month. SNOWBOARD is listening to its audience — and to its advertisers — by delivering content and messaging where they want it, when they want it, and how they want it. . . The team at SNOWBOARD remains passionate about print, and will develop future custom projects rooted in quality, not quantity. SNOWBOARD will no longer rely on traditional subscription and newsstand models that have become particularly ineffective and inefficient for all snowboarding magazine titles in North America.
Makes us wonder how long the Snowboarder and Snowboarding twins will keep their presses rolling. For the official word from Storm Mountain, please follow the jump.
Timbaland breaks down the world of pop cultural business success like no one else in this interview with Ebro and Rosenberg from Hot97. We don’t pretend to know a thing about the music, or the beats, or the scene, but the wisdom he conveys on what hits are, how they come about, and how to play the hit business game — especially his theories on the rise of “programmers over producers” and his own six-year cycle (26:40) — apply to every angle of action sports business.
Looks like Shaun White has actually “joined the Mammoth Resorts’ ownership team” by plunking down a pretty large pile of cash (reportedly seven figures), even though making money by running ski lifts technically ended somewhere in the 90s. That said, he certainly seems stoked on his latest brand affiliation.
“It’s amazing that I’m now an owner of the mountain where I grew up riding,” said White. “As an owner I’ll be able to make changes and shape the future of the mountain and how people enjoy it–whether they’re beginners or professionals.”
Mr. White’s influence on Mammoth’s Big Bear Resorts will certainly help (White House Slopeside Condominiums, Summer Action Sports Complex, and dryslope maybe), and hey, if it sells a few more Air & Style tickets in the process, even better.
Oaktree Capital Management, the deep pockets that saved Billabong, is hoping to take Quiksilver private when it emerges from bankruptcy, according to a story in the Sydney Morning Herald.
Oaktree Capital Management will own more than 90 per cent of the shares in Quiksilver and will take the company private if a US court approves a $US600 million ($853 million) refinancing proposal, new details of which emerged this week. . . The US-based private equity firm owns 18.7 per cent of Billabong International following a similar $350 million refinancing of the Gold Coast-based company two years ago.
It’s all good. Logos are logos. Clothes are clothes.
The mouse dissolving, caffeinated, carbonated high fructose corn syrup tour is getting a jolt of authenticity with today’s announcement that Snowboarder, Surfer, and TransWorld Media’s parent TEN: The Enthusiast Network is stepping in to take the flagging tour in a much needed new direction (while still reportedly keeping their broadcast deal with NBC alive). The best news is that this will give TEN one more thing to sell that doesn’t involve pieces of paper with pretty pictures printed on them.
“Partnering with Mountain Dew and the Dew Tour property showcases exactly what TEN has been designed to do for brands – provide authentic, credible, full-service media capabilities to reach, engage and excite a large audience,” commented Norb Garrett, Executive Vice President / General Manager of TEN, Sports & Entertainment. “The Dew Tour has been around for over a decade, and by leveraging our position as the world’s leading action/adventure sports media company, TEN is dedicated to contributing to its ongoing success so that it will continue on for another decade and beyond, providing a truly one-of-a-kind experience for the action sports community.”
This certainly makes for a good press release if nothing else. Now, if they could just find a new title sponsor. . . For the official word from TEN, please follow the jump.