Paul Frank Industries Loses Paul Frank
Paul Frank Sunich, co-founder and co-chief executive of Costa Mesa, Calif.–based Paul Frank Industries, announced this week that he has left the company to pursue other, unnamed, interests. Company executives announced the split, reported to be amicable, to employees Nov. 7 at the company’s headquarters. According to a company statement, Sunich will no longer be involved with Paul Frank Industries but remains a stakeholder.
Although the news came as a surprise to the industry, sources within the company say they’ve been assured Sunich’s departure will not greatly affect the company. “He hasn’t been involved as much with the company for a while,” said a source who declined to be named. “We haven’t been told the whole story, but for now it seems things will remain the same.”
Sunich launched the lifestyle brand, which makes young men’s and young women’s apparel and accessories, with Chief Executive Officer John Oswald and President Ryan Heuser. The company was incorporated in 1997. Oswald and Heuser will continue to run the day-to-day operations of the company.
Sunich’s departure surprised many in Orange County’s fashion circles, including Shaheen Sadeghi, owner of the specialty shopping centers The Lab and The Camp in Costa Mesa, Calif. Sadeghi had been friendly with the Paul Frank co-founders since they started the company. He believes the label will continue to thrive.
“It has a distinct, established look that can be carried over from season to season,” Sadeghi said. “It’s going to be difficult to replace Paul, but John and Ryan have developed a good team. The label will continue, and the consumer probably will not know the difference.”
Paul Frank Industries—which got its big break with vinyl wallets featuring one of Sunich’s earliest creations, Julius the monkey—raked in an estimated $40 million in sales in 2004. Now the company’s most recognizable ambassador, Julius celebrated his 10th birthday on Nov. 11.
The brand, credited with helping to popularize the use of illustrated characters in apparel, is sold internationally in boutiques and department stores as well as at Paul Frank Industries’ 14 retail stores in cities as far-flung as London; Amsterdam, the Netherlands; Berlin; Athens, Greece; Tokyo; and Seoul, South Korea.
The company, whose slogan is “Paul Frank is your friend,” earned iconic status with its collaborations with companies such as Sanrio (owners of the Hello Kitty brand), Mattel Inc. and John Deere Ltd.
Over the last few years, the company has steadily grown its business away from illustrated characters by diving into more upscale clothing and accessories. In 2004 the company launched Her House by Paul Frank, a line of hip and edgy contemporary sportswear for women, and inked licensing deals with Vestal Inc. to make watches under the name PF Timing and Baum Vision and to make sunglasses under the name PF Optometrics. Paul Frank Industries hired Jeff Yokoyama, former designer of the activewear label Modern Amusement, as design director in September. A hush-hush new brand is set to launch for Fall 2006, but for now the company is staying mum on the details. —Erin Barajas
