Sponsors
Billabong ▼ 0.000 | PPR ▲ +2.20 | American Apparel ▲ +0.015 | The Buckle ▲ +0.19 | Columbia ▲ +0.65 | Deckers Outdoor ▲ +0.47 | Dicks ▲ +0.96 | Foot Locker ▲ +0.56 | Genesco ▲ +0.46 | Iconix Brand Group ▼ -0.10 | Jarden Corp ▲ +0.31 | Nordstrom ▲ +0.95 | Luxottica ▲ +0.61 | Nike ▲ +1.49 | Pacific Sunwear ▼ -0.03 | Skullcandy ▲ +0.01 | Sport Chalet - 0 | Urban Outfitters ▼ -0.16 | VF Corp ▲ +1.12 | Quiksilver ▲ +0.01 | Zumiez ▼ -0.08 | Macys ▲ +1.38 | Tillys ▼ -0.10 |
Ticker Sponsor
Readers Say
I waited too long to sign up for Executive Edition
I waited too long to sign up for Executive Edition

I read Shop-Eat-Surf at every opportunity, and I waited too long to sign up for the Executive Edition. It’s timely, relevant and clearly “from the industry, for the industry.

- By Andy Laats, President, Nixon
Great insight into the issues
Great insight into the issues

I am a big fan of Tiffany and her team as well as an avid reader of Shop-Eat-Surf. I shop, I eat, I surf -- I should pay.

- By Kevin Bailey, President, Vans
Industry Insight

MOSS ADAMS: Webinar 12/2 on internal controls to increase the value of your business.
AGENDA: 12/30 deadline to pre-register for Jan. 5-6 Long Beach show.
CIT TRADE FINANCE: Middle-market retailers cautiously optimistic for holiday.
Details on Industry Insight.


Tiffany Montgomery
Print This Article

Spy parent reduces salaries, workweek; dispute with No Fear heats up

By Tiffany Montgomery
April 16, 2009 8:14 AM

The parent company of the Spy sunglass brand is in the midst of a 13-week plan to temporarily reduce employee expenses, according to its annual report filed this week with the Securities and Exchange Commission.

Orange 21 Inc. has temporarily reduced salaries and work schedules and implemented mandatory vacation leave.

The company reported sales of $47.3 million in 2008, a 2 percent increase. It recorded a $15.2 million net loss, including a non-cash accounting charge of $8.4 million. In 2007, Orange 21 had an $8 million loss.

Gross profit as percentage of sales was 45 percent, down from 49 percent in 2007.

Because of the slowing economy, the company cut $4.1 million in operating expenses in 2008.

Orange 21 is also in the midst of a fight with No Fear, which owns 14 percent of Orange 21's outstanding stock, according to the annual report. No Fear Retail in the U.S. and No Fear MX Europe combined owe Orange 21 $858,000 in past due balances for product No Fear bought from Orange 21.

Orange 21 has stopped shipping No Fear, and the two sides are in settlement negotiations, the annual report says.

Separately, Mark Simo of No Fear believes Orange 21 owes him $600,000 in compensation for his two-year tenure as CEO, which ended in 2008. The Orange 21 annual report says Simo previously declined compensation his first year on the job. The two sides are also in negotiations on this issue, though there's no guarantee of a resolution, Orange 21 said.

Going forward, Orange 21 believes one of its biggest growth opportunities is increasing sales to sunglass specialty and optical retailers, and the company is devoting resources to sell to that channel.

 


Articles You Might Have Missed