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- Brand to be added to PacSun stores
- Modern Amusement and PacSun to increase distribution at more "appropriate" price points. Will look at international and other distribution opportunities as well
- Agreement covers footwear, apparel, accessories
- PacSun to handle merchandising, design, sourcing
- Agreement lasts through 2013, with seven-year option
- More info to come after PacSun conference call
Here is the Release:
Pacific Sunwear Announces Agreement to License the MODERN AMUSEMENT Brand
ANAHEIM, Calif., Aug. 24, 2010 (GLOBE NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) ("PacSun") announced today that it has entered into an exclusive agreement to license the MODERN AMUSEMENT brand from Dirty Bird Productions, Inc. ("DBP"). MODERN AMUSEMENT is a design driven, California street wear brand for men's and women's sportswear and accessories.
MODERN AMUSEMENT was acquired in 2004 by Mossimo Giannulli, the founder and creative force behind the MOSSIMO brand which he established in 1987 and later licensed to Target Corp. The MODERN AMUSEMENT brand has been sold in the United States through premier 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 Mr. 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."
"MODERN AMUSEMENT will continue to represent a fashion lifestyle while becoming more widely distributed at appropriate price points," said Mr. Giannulli. "Building on the success of how we initially launched the brand, I believe we can create a much bigger business leveraging the merchandising, design, and sourcing capabilities that's now been assembled at PacSun."
"I have long been an admirer of Moss's creativity, vision and ability to build brands," said Gary H. Schoenfeld, President and Chief Executive Officer of Pacific Sunwear. "We believe that the addition of the MODERN AMUSEMENT brand will enable us to bring an added dimension to our stores through the vision of one of the leaders of Southern California surf and street fashion over the past 25 years."
Mr. Schoenfeld continued, "When I joined PacSun last summer, I spoke of the importance of re-establishing our leadership position with our heritage brands, strategically complemented by our own proprietary brands. A smaller yet important third part of our product mix would tie to PacSun once again being a destination for emerging brands. MODERN AMUSEMENT has become a very coveted emerging brand over the past few years and with its Southern California heritage, this is a very exciting opportunity to further differentiate PacSun as a leader in lifestyle and fashion among 15-24 year olds."
The agreement with DBP will extend through December 31, 2013, and PacSun will have an option to extend the agreement for an additional seven years. The license covers apparel, footwear and accessories. The parties will work together on additional licensing opportunities and the development of other domestic and/or international distribution. Each party will have mutual approval rights with respect to such transactions, and PacSun will have the right to share in any amounts generated from licenses entered into by DBP.
About Pacific Sunwear of California, Inc.
Pacific Sunwear of California, Inc., together with its subsidiaries (collectively, the "Company"), is a leading specialty retailer rooted in the action sports, fashion, and music influences of the California lifestyle. The Company sells a combination of branded and proprietary casual apparel, accessories and footwear to teens and young adults. As of July 31, 2010, it leased and operated 880 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com.
About Dirty Bird Productions, Inc.
Dirty Bird Productions, Inc. is the owner and license operator of the MODERN AMUSEMENT brand. MODERN AMUSEMENT is the California dream, inspired by international art, music, technology and design, an eclectic collection that references a privileged lifestyle, growing up on the sun-drenched shores from Laguna to Malibu.