by The Editors on September 10, 2010
Jeff Harbaugh just wrote up his analysis of the most recent Zumiez quarterly report but the part of his column that has everyone talking is something he mentioned about Zumiez purchasing 14.3 percent of an unnamed apparel and hardgood manufacturer.
On May 11th, Zumiez bought a 14.3% interest in a manufacturer of apparel and hard goods for $2 million. I emailed Zumiez asking for more details but they aren’t disclosing any, which is what I expected. Zumiez has the right to sell its interest back any time between the fifth and the seventh anniversary of the investment. And the company they invested in has an option to buy their stock back on or after the seventh anniversary of the initial investment.
And it makes us wonder: what brand is so important to Zumiez’s that the core mall retailer was willing to pay $2 million to keep them in business. If you have any ideas, please leave them in the comments
.
[Link: Jeff Harbaugh’s Market Watch]
by The Editors on September 8, 2010
by The Editors on September 2, 2010
Zumiez settled a California lawsuit last year over meal breaks and overtime pay and settling the suit has actually cost the company $2.1 million rather than the $1.3 million originally reported, according to a story in the Puget Sound Business Journal.
The Everett-based youth apparel retailer, in a Securities and Exchange Commission filing, said “the lawsuit is similar to numerous lawsuits filed against retailers and others with operations in California. Although the company believes that the allegations in the lawsuit lack merit, it has agreed to a mediator’s proposal to settle the claims in the lawsuit to avoid significant legal fees, other expenses and management time that would have to be devoted to protracted litigation.”
It’s so nice when companies realize that it’s cheaper to pay their employees than to pay lawyers. Guess that’s what lawsuits are for.
[Link: Puget Sound Business Journal]
by The Editors on August 25, 2010
We’ve always wondered how mall retailers stay in business. Apparently, they just keep borrowing more money. Pac Sun just announced that on August 20, 2010 they borrowed $29.8 million more, according to a Form 8-K filed with the SEC.
On August 20, 2010, Pacific Sunwear of California, Inc. (the “Company”), through its wholly-owned subsidiaries, Miraloma Borrower Corporation, a Delaware corporation (“Miraloma”), and Pacific Sunwear Stores Corp., a California corporation (“PacSun Stores”), executed two promissory notes pursuant to which borrowings in an aggregate amount of $29.8 million from American National Insurance Company (“Anico”) were incurred.
Because no one has more money than the insurance companies. . . and this will probably help get Pac Sun around the corner, right?
[Link: SEC]
by The Editors on August 25, 2010
West 49’s shareholders decided that being purchased by Billabong was a great idea, according to a story in the OC Business Journal.
Shareholders of West 49 voted nearly unanimously for Billabong’s $93 million buyout. The deal is set to close later this month or in early September. . . West 49, based near Toronto, runs a chain of 138 mall stores in Canada selling clothes inspired by skateboarding and snowboarding.
Apparently, 99.9 percent of the shareholders agreed. Wonder who the hold out was?
[Link: OC Business Journal]
by The Editors on August 24, 2010
Mossimo Giannulli has officially licensed Modern Amusement to Pacific Sunwear of California, according to a story on Sports One Source.
Mossimo establishd the Mossimo brand in 1987 and later licensed to Target Corp. The MODERN AMUSEMENT brand has been sold in the United States through retailers such as Nordstrom, Barney’s, Fred Segal and Bloomingdales, and internationally through accounts such as Selfridges and Harvey Nichols in the U.K. and Beams in Japan. . . .”I am so pleased to be working again with Pacific Sunwear which in many ways is like coming home,” said Giannulli. “PacSun was my first large account when I was building MOSSIMO, and to be able to take the model that I have had so much success with and build on that platform with Gary and his team is really exciting.”
When we read news like this we wonder how much money Mossimo really need. More apparently. Then again he probably does it for the love of the game.
[Link: Sports One Source]
by The Editors on August 23, 2010
We all have heard that Chris Cole owns a skate shop in Langhorne, Pennsylvania called Reign Skate. But what we didn’t know is that he has a partner in the business named Skip Millard.
Transworld Business interviewed Millard to get the background on Reign and what it’s like to run a small business with a big partner.
Everyone around the shop thinks since Chris is the partner we have unlimited cash but if that was the case I would just write myself a check. Really, just the trials and tribulations of opening a small business. There is no turning it off at 5-o’clock and sometimes you won’t get home until nine and have to put in another two hours. It’s a lot of hard work, but if you love doing it, it’s worth it.
Follow the link for the rest of the interview.
[Link: Transworld Business]
by The Editors on August 20, 2010
Randy Wright isn’t saying much about the closure of the Horizons West Surf Shop last month, according to a story in the Santa Monica Daily Press. But to fans of the Dogtown & Z-Boys story it was a sad day.
The skate and surf shop, owned by surfer Randy Wright, occupied a modest, one-story building at the corner of Main and Bay streets that was designated a city landmark in May of 2007 after neighbors and skateboarding enthusiasts erupted in outrage over plans to tear it down and replace it with a mixed-use development. The retail space was the original home of Zephyr and Jeff Ho Productions, whose founders, Skip Engblom and Jeff Ho, created the Zephyr Skate Team, which became known as The Z-Boys. . . Wright did not return several phone calls seeking comment.
Guess we can’t expect a retailer to live on the past forever.
[Link: Santa Monica Daily Press via LAist]
by The Editors on July 14, 2010
Billabong has been buying so many retailers lately that this one slipped under the radar. Billabong has apparently purchased four retail stores last week in Byron Bay, Australia own by brothers Gary and Mark Timperley, according to a story in the Byron Shire News.
It will be business as usual for Gary and Mark, who will stay on as store managers for at least two years and will retain the existing employee base. . . “I think these are always difficult decisions, but the fact we are selling to one of our original customers and then remaining in the business in a management capacity makes it a little easier,” Mark said. . . “When we started to talk about selling the businesses we realised we hadn’t stopped working since we left school in Fourth Form (Year 10).
The four sores include Bay Action, Big Kahuna, S-cape Byron, and not so oddly Billabong. We should probably start a Billabong tote board just to keep track of all of this.
[Link: Byron Shire News]
by The Editors on July 13, 2010
It was a wonderful play while it lasted. Zumiez strolls, in says they’re going to one-up Billabong in the purchase of West 49 and then four days later decides that maybe it wasn’t such a good deal, according to the Associated Press.
Sports apparel retailer Zumiez Inc. said Tuesday it won’t be buying Canadian retailer West 49 Inc., saying it has not been able to reach an agreement over the due diligence process.
God know what kind of back room discussions have been going on in the last few days. Maybe this will allow Billabong to pay even less for the mall retailer now that they’ve been jilted? Or maybe West 49 will just have to go back to losing money on their own.
[Link: Bloomberg Businessweek]
Jeff Harbaugh just wrote up his analysis of the most recent Zumiez quarterly report but the part of his column that has everyone talking is something he mentioned about Zumiez purchasing 14.3 percent of an unnamed apparel and hardgood manufacturer.
