Paul Frank Culls Workforce, Welcomes New Investors
For the first time in its 10-year history, Paul Frank Industries has had to lay off staff members.
In October, 24 employees were let go, confirmed Nancy Carlson, the Costa Mesa, Calif.–based company’s head of public relations.
Company founders Ryan Heuser and John Oswald declined to comment, but Carlson said the cuts came after it was determined the staff was too large for the apparel and accessories company’s needs.The cut took a large chunk out of Paul Frank’s staff, which now stands at just more than 100 employees. “We had to make some trims. It was very difficult, but it had to be done,” Carlson said, hinting that more cuts might be necessary later. “We’re not out of the woods yet.”
Carlson did deny the persistent rumor that Mossimo founder Mossimo Giannulli had acquired ousted founder Paul Frank Sunich’s 33 percent ownership in the company. Sunich, the artist who created the company’s famous Julius the Monkey image, was ousted from the company in 2005.
The rumor gained traction because Giannulli has been friendly with Paul Frank’s top brass, she said. Sunich’s stake in the company has been sold, she said, to an unnamed party.
Heuser and Oswald each retain 33.3 percent ownership of the company, which was founded in 1995. —Erin Barajas
