California Apparel News

Pacific Sunwear of California has announced that it has entered into a licensing agreement to produce Modern Amusement–branded apparel for men and women. The deal—which includes apparel, footwear and accessories—extends through Dec. 31, 2013, when PacSun will have the option of extending the license for another seven years.

The agreement, which was made through Dirty Bird Productions, the company that owner Mossimo Giannulli created to manage the licensing of the Modern Amusement brand, takes the brand out of the contemporary-sportswear market and out of the high-end and specialty retailers where it once sold.

“Modern Amusement will continue to represent a fashion lifestyle while becoming more widely distributed at appropriate price points,” Giannulli said in a statement. “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.”

With the acquisition of the Modern Amusement license, PacSun continues to make moves toward repositioning itself as a more fashion-forward surf/skate lifestyle retailer. In the last year, the company has hired several key executives from retailers such as Urban Outfitters, for example. The mall-based retailer has also partnered with brands to create promotions that appeal to a hip, young crowd. In September, PacSun is exclusively selling a line of Hurley apparel that was designed in collaboration with the pop band Weezer, and it will be the first retailer in the country to sell the new Weezer album, “Hurley.”

“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,” said Gary Schoenfeld, PacSun’s president and chief executive, in a statement. “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- to 24-year-olds.”

News of the license comes after Modern Amusement announced it was ceasing operations in January following a falling out with Michael Boyes, the company’s chief executive officer, who, in 2008, created Blk Brd LLC to act as Modern Amusement’s master licensee. At the time Blk Brd was created, Giannulli said, he hoped the five-year license would help the brand grow significantly. In late 2009, a lawsuit was filed in California’s Orange County Superior Court and was followed by complaints and cross complaints by Blk Brd and Giannulli against each other regarding the management of the brand.

The release from Pacific Sunwear does not reveal the outcome of the lawsuit or the financial terms of the license.—Erin Barajas