News Summary
Dickies, the iconic workwear brand, will be moving its headquarters from Fort Worth, Texas, to Costa Mesa, California, as part of a restructuring effort by its parent company, VF Corporation. The move aims to enhance collaboration with Vans and will affect approximately 120 jobs in Texas. Set for completion by May 2025, the relocation is part of VF Corp’s strategy to optimize resources amid declining revenues across several brands. While some in Texas express disappointment, California officials welcome the change, reflecting varied community reactions.
Costa Mesa, California — Dickies, the renowned workwear brand founded in Fort Worth, Texas, in 1922, will be relocating its headquarters to Costa Mesa, California, as part of a restructuring initiative by its parent company, VF Corporation. This strategic decision aims to foster collaboration between Dickies and Vans, another brand within the VF Corp portfolio, and is expected to impact approximately 120 jobs in Texas.
The relocation follows VF Corp’s acquisition of Dickies for $820 million in October 2017, and will see the brand sharing headquarters space with Vans at 1588 South Coast Drive, conveniently located near the 405 Freeway in Costa Mesa. The relocation is anticipated to be completed by May 2025.
As part of this restructuring, VF Corp seeks to optimize its real estate use and encourage synergy between the two brands for enhanced creativity and operational best practices. Despite the potential benefits of this move for brand collaboration, the transition will significantly affect existing employees at the Texas location, although specific details regarding potential new hires in Costa Mesa have not been revealed.
The decision to move headquarters comes amid challenging financial times for VF Corp, as it faces declining revenues across several of its brands. For instance, in the second fiscal quarter ending September 28, Dickies reported an 11% drop in revenue, mirroring the decline also experienced by Vans. Other brands managed by VF, including The North Face and Timberland, reported decreases of 3% in the same quarter. This downward trend in revenue has resulted in cautious market responses, including S&P Global downgrading VF Corp’s credit rating to junk status.
In light of these financial struggles, VF Corp is focused on executing a turnaround strategy to stabilize its business operations. Recently, Chris Goble was appointed as the new global brand president for Dickies, taking over from Todd Dalhausser, a move that may signal a shift in leadership approach as the company seeks to navigate through these turbulent times.
In conjunction with the vocational shifts at Dickies, a related Worker Adjustment and Retraining Notification (WARN) notice has been issued, announcing the upcoming closure of a distribution center in Martinsville, Virginia. This closure will adversely affect 242 employees by January 19. As companies migrate operations in response to economic conditions, this closure adds to the larger narrative of corporate transitions within the industry.
The local reaction to Dickies’ move to California has been mixed. While some community members in Fort Worth have expressed disappointment over the brand’s departure, California Governor Gavin Newsom welcomed the relocation, emphasizing the state’s robust economic landscape. This contrasting perspective highlights the complexities of corporate migration and its implications on local communities.
Market analysts note that VF shares saw an increase of 3.5% following the announcement of the restructuring plan, indicating a cautiously optimistic outlook from investors amidst the company’s efforts to realign its operations. As VF Corp shifts its focus and consolidates its resources in Costa Mesa, the outcomes of this transition will be closely monitored in the forthcoming months.
As Dickies embarks on this new chapter in California, the implications of this move extend beyond corporate strategy, influencing employee livelihoods and reflecting broader trends in the business landscape.
Deeper Dive: News & Info About This Topic
HERE Resources
Dickies Relocates Headquarters to Costa Mesa, California
Additional Resources
- Star-Telegram
- Wikipedia: Dickies
- ABC7
- Google Search: Dickies clothing company
- Los Angeles Times
- Encyclopedia Britannica: Dickies
- Orange County Business Journal
- Google News: Dickies California move
- Mercury News
- Google Scholar: Dickies headquarters move
- NBC DFW
- CoStar
