PACIFIC SUN TO RELOCATE HEADQUARTERS
Byline: Kristin Young
LOS ANGELES — Pacific Sunwear of California Inc. is in an expansion mode, with plans to add lots of stores over the next year or two. But, its latest move concerns a relocation of its corporate headquarters and distribution center.
The activewear retailer said it has agreed to buy a 19-acre site in Anaheim, Calif., for a new headquarters and distribution center to meet its long-term growth needs.
The new site, at 3450 East Mira Loma Avenue, is about three times the size of the current headquarters at 5200 East La Palma Avenue, which is about three miles away.
PacSun will spend $40 million on the new facility, including $12.1 million to purchase the property from Boeing North American Fitness Inc. The deal, subject to final approvals and side agreements, is expected to close by December.
The company will build a 180,000-square-foot, three-story building that can house about 700 corporate employees and a 300,000-square-foot distribution center with the capability of supporting 1,200 stores. Both will be ready for occupancy by December 2001.
“For the first time in our history, we’re starting from scratch in terms of design and constructing something that fits our needs,” said Carl Womack, PacSun’s senior vice president and chief financial officer.
PacSun plans to open 1,000 stores by 2003 and expects to have more than 700 stores by the end of 2001. There are 225 corporate employees and 450 PacSun stores, specializing in surf and skatewear, as well as 41 PacSun outlets and 68 demo stores geared for hip-hop inspired clothing.
To create the headquarters, PacSun has hired architect firm De Revere & Associates; construction company Oltmans Construction, and H. Hendy Associates, an interior design firm.
PacSun said it wants to sublease its present location.
The company’s net sales were $224.5 million in the quarter ended in July, up 34 percent from the same quarter a year ago. Net income increased 16 percent to $13.2 million.