After the news, shares dropped 31% to $8.50 apiece during midday trading with a market cap of $479 million (NYSE: XPOF).

Xponential, which reported earnings on May 2, said on May 7 it received notice of an investigation by the United States Attorney’s Office (USAO) for the Central District of California. The fitness franchise operator in December disclosed an investigation by the Securities and Exchange Commission (SEC). The company’s board has formed a special committee of directors to investigate both matters.

Morris joined the Xponential board in 2019 and counts over 35 years in finance, accounting and operations roles. She is currently a partner at executive services firm CSuite Financial Partners.

“Over the last five years, Brenda has been a deeply involved Board member as we have pursued Xponential’s mission to make health and wellness accessible to everyone,” Chairman Mark Grabowski said in a statement.

Xponential reaffirmed its full-year 2024 guidance of opening 550 new studio locations and $1.7 billion in systemwide sales announced in May.

The post Xponential Fitness Removes CEO appeared first on Orange County Business Journal.

“We’ve seen a big rise in awareness of, and interest in, the brand,” co-founder and Chief Executive Joe Croft told the Business Journal.

Croft, a San Clemente resident, said the company is averaging 750,000 unique monthly visitors to its website, which features specially designed glasses to reduce and avoid digital eyestrain.

“We also expanded the brand appeal with new imaging, messaging and product that is not strictly gamer-related,” Croft said.

That expansion includes revamping the marketing department and a stronger PR effort. The company is based in Carlsbad.

Croft points to the recently sold-out Fallout and anime-inspired tokidoki x Gunnar models as signs of success.

“Lots more work to do, but so far this year we have hit months with a 400% increase year-over-year in web traffic,” Croft told the Business Journal on April 26.

He said Gunnar, founded in 2006, has “staying power” and the early efforts “have paid off, but slowly.”

“Our new collaborations with Blizzard, tokidoki and Fallout continue to drive growth, and we plan to introduce more high-profile partnerships soon,” Croft said.
Virginia to Pacific

Croft went to high school in Langley, Va.—“right next to the CIA,” he says—before coming west to Stanford University for a Bachelor of Science degree in engineering-product design.
While at Stanford, he was captain of the rugby team and belonged to the Sigma Chi fraternity.

He’s been a volunteer with the Boy Scouts of America for more than 20 years.

Gunnar Optiks said it invented and patented computer and gaming eyewear almost two decades ago.

“We rebranded in late 2023 to broaden the appeal and pull back on the in-your-face gamer marketing,” Croft said.

“Many non-gamers got turned off by it, and, as a gamer myself, I felt it wasn’t appealing to the breath and sophistication of the gamer market.

“If you have to say you’re cool, you’re not cool.”

Market, Influencers

“The number of influencers we work with has skyrocketed. Organic, online sales are booming, and we keep broadening the reach,” Croft said.

The recent introduction of the Clear Pro lens tint, targeted specifically at graphic designers, digital photographers and visual artists, represents the latest expansion to additional areas of digital eyestrain protection, according to Croft.

The privately held company’s 2023 revenue was between $5 million and $10 million, he said.

The company has no brick-and-mortar stores that are Gunnar branded.

“However, we have successfully helped Best Buy roll out Gunnar centers within their stores, where customers can try on glasses and experience the Gunnar difference,” he said.

Gunnar is available in over 550 stores in the U.S. and Canada, with displays throughout the store.

All the glasses are designed at its Carlsbad headquarters, with the work then sub-contracted to various suppliers.

25 Employees

Gunnar has 25 employees dispersed between Orange County and San Diego County.

The primary owners are Croft, along with Matt Michelsen and Jenny Michelsen. The trio joined together more than 20 years ago to develop eyeglasses that help reduce the “growing epidemic” of eyestrain.

The prices of their eyeglasses range from $50 to $150.

The company said the technology and coatings it puts on its baseline lenses make them far more special than other blue-light blocking computer glasses. Prescription lenses are available on most glasses for an extra cost.

“All of them incorporate patented Gunnar technology that reduces eyestrain by providing focusing power to relax eyes, wrap to keep eyes from drying out and light filtering to reduce high-energy visible light. The price difference comes primarily from the performance of the frames and lenses,” he said.

For example, the Signature line boasts ultra-durable precision engineered polymer frames and features the base lens configuration.

The Epic line upgrades to hybrid (metal plus polymer) frames with customizable fit along with an upgraded lens.

“We also just released our new Arbor line of glasses made up of carbon fiber-reinforced sustainably harvested wood,” Croft said.

“Gunnar patented high-wrap lenses trap in humidity and block out drying air currents. The technology keeps eyes comfortably protected with an ideal ocular microclimate,” the company says on its website.

What are Croft’s tips on finding success as a small business in Orange County?

“Keep costs low, avoid unnecessary leverage and hire smart,” he said.

The post Gunnar Optiks Looks Beyond Gamers appeared first on Orange County Business Journal.

The company’s headquarters remain on Monrovia Avenue in Costa Mesa.

JLL represented Liberated in the deal, which closed in March, for all of the sixth and seventh floors of the 12-story building at 555 Anton Blvd.

Synchrony Financial is subletting the space and will stay in the project.

The bank was represented by Cushman & Wakefield’s John Gallivan and Amanda Mann.

Mitch Lundquist and Steve Wagner of JLL represented Liberated Brands.

Liberated’s move follows a year of client growth, resulting from acquisitions and through its partnership with New York City-based management firm Authentic Brands Group, which specializes in acquiring and exploiting brand names from companies in financial difficulty.

Its properties include Sports Illustrated, Forever 21 and Reebok.

Liberated was formed by and majority owned by Volcom’s Chief Executive, Todd Hymel, along with several members of Volcom’s management team. Authentic owns a minority stake.

Liberated initially took over management and control of the Volcom brand in 2019. It recently began managing various operations for many Authentic-owned brands.

These functions include managing product designs, sales and distribution, typically for lines of active, outdoor and sports apparel.

OC Brand Takeover

After Authentic Brands bought Huntington Beach-based Boardriders and its retail portfolio last September, Liberated took over the operations for Boardriders’ brands Quiksilver, Billabong, Roxy, RVCA, Honolua Surf and Boardriders itself.

Liberated now manages the retail and e-commerce operations for Quiksilver, Billabong, Roxy, RVCA, Honolua and Boardriders. It’s also the license partner and wholesale distributor of Billabong, RVCA and Honolua for some of the companies’ core product categories, including adult activewear, swimwear and headwear.

The Boardriders portfolio was said to generate annual retail sales of $2.9 billion at the time of the acquisition.

A month after taking over Boardriders, Authentic and Liberated said the latter would take over the international growth efforts for the newly acquired brands, as well as DC Shoes, Element, VonZipper and other Authentic-owned brands.

This included oversight of a retail network of more than 200 locations across Australia, New Zealand, Thailand and Indonesia.

Last year marked the largest addition of retailers for Liberated since its founding.

“This expansion has led to nearly doubling our domestic workforce,” Liberated’s Chief Operating Officer Brad Holman told the Business Journal.

This is “an exceptional property that will accommodate our growing team,” he added.

The group acquired the core licenses for Boulder, Colo.-based Spyder in 2021 to run its apparel sourcing, product design, marketing, wholesale, e-commerce and retail store operations.

In 2022, Liberated acquired Captain Fin Co. and became the sole owner of the Costa Mesa-based builder of surfboard fins, clothing and surfing accessories.

The company said it currently sells products in more than 100 countries through department and specialty stores, in over 400 of its company-operated retail stores and 48 company-owned websites.

The post Liberated Expands in Costa Mesa­ appeared first on Orange County Business Journal.

These firms brought in an estimated $9.6 billion in 12-month sales, an 8.7% decrease from last year, according to Business Journal research. Several of the companies declined to share revenue figures.

Standouts include Anaheim-based PacSun, which creates apparel aimed at a younger demographic, and a reported 22% increase in local headcount. As of April, PacSun has 393 employees in the region; its companywide count fell 9.6% to 5,185.

Pacsun said it had double digit sales growth year-over-year in 2023.

Z Supply in Costa Mesa also increased its employee total by 12%, counting 91 people as of this month.

After the sale of Boardriders to New York City-based Authentic Brands Group, the newly acquired brand portfolio was given to a new operating company, Liberated Brands, which is expanding its office space to The Met complex in Costa Mesa.

Liberated will be stationed nearby 5.11 Tactical, a retailer that designs and manufactures tactical and durable clothing, in Costa Mesa. 5.11’s headcount was reported to be consistent year-over-year with 200 local employees across its offices and two retail stores.

For co-founder Francisco Morales, who recently moved from the role of chief executive to chairman, the priority has been maintaining efficiency in the office.

“We are diligently working on gaining speed to market in a hybrid work environment—striving for a harmonious balance between remote flexibility and the irreplaceable value of in-person collaboration,” Morales told the Business Journal.

Newly named Chief Executive Troy Brown, who took over the role in January, spoke of that consumer market and 5.11’s work to reach new customers:

“We continue to see consumers expand how they connect with brands leveraging both physical and digital touch points.”

5.11 surpassed 100 brick-and-mortar stores in 2022 and aims to reach 400 in the next few years.

Markets and Models

While many smaller apparel companies chose not to disclose their revenue, larger players such as Boot Barn Holdings Inc. and 5.11 are reporting substantial sales.

5.11’s customer base began with first responders and military personnel and is beginning to extend to outdoor enthusiasts, according to the company. The retailer, founded in 2003, reported 2023 sales climbed 6.6% to $533 million.

Boot Barn, the Irvine-based western wear retailer that targets outdoor workers and country music fans, reported fiscal sales rose 11% to $1.66 billion for the year ended March 2023; analysts are projecting sales will be flat at $1.67 billion in fiscal 2024.

The company is the most valuable publicly traded apparel company in Orange County, with a $3.3 billion market cap.

Sales estimates for local retail manufacturer FutureStitch, which uses a method of circular knitting to create socks and other knitwear for apparel companies, were included for the first time this year, as well with news that the company had reached its $50 million goal last year.

“Traditionally, the apparel industry has focused on aesthetics over substance, negatively impacting the environment by creating excessive waste and contributing to injustices in labor markets,” founder and CEO Taylor Shupe said.

This has led Shupe to create a new manufacturing model implementing environmentally safe methods in its factories.

Shupe, who also co-founded San Clemente-based Stance, received the Business Journal award for Excellence in Entrepreneurship in March.

The post OC Apparel Companies’ Headcount Up Slightly to 8,000 appeared first on Orange County Business Journal.

The discount retailer, with over 370 “extreme value” retail stores in California, Arizona, Nevada and Texas, on April 4 said it would liquidate its operations.

The move comes a little more than a year after the company announced plans to relocate its headquarters from the City of Commerce to Tustin, where it was expected to have close to 200 employees at its nearly 40,000-square-foot local base.

“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment,” former Interim Chief Executive Mike Simoncic said in a statement this month, citing the “unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the company’s ability to operate.”

The company followed up on its liquidation announcement by filing for Chapter 11 bankruptcy protection on April 8, in Delaware. The company’s bankruptcy petition listed more than $1 billion in liabilities for the chain, whose top 10 creditors are collectively owed nearly $35 million.

While company statements pertaining to the liquidation and bankruptcy have cited City of Commerce as its base, court filings continue to cite Tustin’s Flight office campus as its headquarters.

99 Cents’ offices at the OC campus were open but largely empty as of last week.

Big Local Footprint

A closure of the discount chain could present an opportunity for other local chains to expand their presence in a market where retail space is in short supply; Orange County’s base of retail space counts a vacancy rate of around 4%, according to local brokerage data.
99 Cents’ base of OC retail locations totals nearly 400,000 square feet across more than 20 leased and owned stores, according to data from real estate market tracker CoStar Group Inc.

The largest concentrations of sites in OC are in Garden Grove, with four stores, and Huntington Beach, with three locations.

Among the chain’s largest sites in OC, at nearly 31,000 square feet, is at Santa Ana’s Bristol Warner Village mall.

Santa Ana has two 99 Cents locations, and city officials said last week those two spots employ nearly 50 people in total.

“We hope to see all of the affected workers land on their feet with new jobs and to bring new businesses to these storefronts that will benefit the community and surrounding neighborhoods as quickly as possible,” the city said in an April 8 statement.

99 Cents counts a trio of company-owned stores in OC, including a 38,100-square-foot spot in Fullerton, alongside locations in Foothill Ranch and Garden Grove.

Buyers, New Tenants

99 Cents officials said in court filings that 32 prospective buyers were contacted in recent months, including 20 prospective strategic buyers and 12 private equity companies.

The bankruptcy filing could slow down any prospective sale, one potential bidder said.

“It doesn’t mean we’re not going to go forward,” Mark Miller, the organizer of one investor group and the current chairman and chief executive of Pic ‘N’ Save, as well as previous president of Big Lots, told Los Angeles Magazine, “but it just makes it a little more difficult.”
Miller’s group includes past 99 Cents Only Stores executives.

Other potential bidders include competing discount retailers, such as Five Below or Daiso, Justin McMahon, senior vice president for the retail division of commercial brokerage JLL, told the Business Journal.

Each of those chains has about 10 locations in OC, with more in development, he said.

“They could be big winners if landlords are looking to keep the [discount] niche alive,” he said.

Going Upscale?

A closure of 99 Cents’ operations presents an opportunity for landlords to add more upscale tenants to their roster. One challenge: most 99 Cents Only locations, which average about 20,000 square feet, are considerably smaller compared to the major anchor stores that favor outdoor retail centers, such as grocery stores and big-box retailers, McMahon said.

Landlords might consider tenants such as specialty retailers and fitness centers as replacements, he said.

Both Five Below and Daiso perform well in more upscale markets, not just in centers that include discount retailers like 99 Cents, the broker said.

99 Cents Only said on April 4 they had brought in Northbrook, Ill.-based Hilco Global to liquidate all its stores’ merchandise and store equipment.

Simoncic, a managing director at restructuring and turnaround consulting firm Alvarez & Marsal, at the time of the bankruptcy filing stepped down from the top role at 99 Cents. Chris Wells, another managing director from the same firm, was appointed chief restructuring officer.

Last year’s relocation to Tustin followed a series of restructuring moves, including a 2019 recapitalization for the firm that included a $34 million cash infusion by a group that included Ares Management Corp. and institutional investors, which acquired 99 Cents in 2012.

The post Bidders, Tenants Circling 99 Cents Only Stores appeared first on Orange County Business Journal.

The retailer, with 371 retail locations in the U.S., has entered an agreement with Hilco Global to liquidate all merchandise and dispose of store equipment. Hilco Real Estate is managing the sale of the company’s real estate assets.

“Unfortunately, the last several years have presented significant and lasting challenges in the retail environment, including the unprecedented impact of the COVID-19 pandemic, shifting consumer demand, rising levels of shrink, persistent inflationary pressures and other macroeconomic headwinds, all of which have greatly hindered the Company’s ability to operate,” Interim Chief Executive Mike Simoncic said in a statement.

The company still cites City of Commerce as its headquarters.

Simoncic is also stepping down from his role. Sales under the agreement with Hilco are set to start today.

The post 99 Cents Only Stores to Shut Down appeared first on Orange County Business Journal.

1 of 10

The post Bass Pro Shops Opens in Irvine appeared first on Orange County Business Journal.

Then he got a call from 5.11 Inc.

“I thought I had finished my life’s work” in retail, Brown told the Business Journal.

However, 5.11 is “the opportunity to take what I did every day from a passion work perspective, and then connect it really meaningfully with what my family is all about.”

The tactical apparel and gear company based in Costa Mesa named Brown in January as its new chief executive, replacing co-founder Francisco Morales, who is now the executive chair for 5.11.

Brown is taking over as CEO of a company that recorded more than $500 million in sales last year and is aiming to quadruple its store count from 123 to 400 in the coming years.

“He’s coming in with a fresh set of eyes and not only that, but with a lot of expertise,” Morales told the Business Journal.

Zumiez Expertise

Brown was previously North America president for Zumiez Inc. (Nasdaq: ZUMZ), which operates 756 stores that sell action sports apparel. The company, which has a market cap around $300 million, last week reported fiscal 2023 sales fell 8.6% to $875.5 million.

He’s also worked at Zion’s Co-operative Mercantile Institution, as well as Eddie Bauer, Nautica International and Tommy Bahama.

In 2019, Morales helped to convince Brown to join 5.11’s board of directors and then convinced him again to be its new CEO this year.

“I feel like we had a great football team, and now we have a quarterback with a specific [skill set],” Morales said.

Brown was praised for his operation skills by 5.11 owner Compass Diversified (NYSE: CODI), which has a portfolio of 10 companies—its other local holding is Newport Beach’s Lugano Diamonds—and is valued at $1.8 billion.

“Troy Brown, who had very high positions at Zumiez for many years, along with many [other] relevant businesses, we believe is very strong at operational excellence and he’ll be working with Francisco Morales [who] understands brand and product development and will stay on as executive chairman,” Compass CEO Elias Sabo told analysts on last month’s earnings call.

“We believe Troy is very strong at driving operational efficiencies and at delivering for the end customer in a DTC (direct-to-consumer) environment, and we think that combination will really yield tremendous benefits.”

Passion Customers

Morales and partner Dan Costa launched 5.11 in 2003 to manufacture more durable clothes for public safety professionals, starting with a pair of pants specially made for the Federal Bureau of Investigation.

5.11 now works with thousands of government departments and distributes products to wholesalers in 120 countries alongside its DTC website and retail stores.

Since 2016 when Compass paid $408.2 million to acquire 5.11, its revenue has grown almost fivefold. In 2023, sales climbed 9.4% to $533 million while its operating profit increased 7.4% to $46.7 million.

Among Compass’ 10 brands, 5.11 is the largest unit by sales.

5.11’s passionate customers who serve are what makes the company stand out, Brown said.

Morales credits its core group of customers, including military, first responders and similar workers, with sparking the effort to improve 5.11’s apparel.

Brown said he knows well 5.11 because he’s the father of sons who have served as a policeman, a prison guard, a firefighter in training and in the Air Force. Brown noted he understands the importance of 5.11’s long-lasting clothes and gear.

“That’s why I took the call so quickly because I know this is a passion-based brand,” Brown said. “What we need to really focus on is a growth mindset and the set of activities that’s going to allow us to scale its passion.”

The pair intend to work closely together; their offices are next to each other in the Costa Mesa headquarters.

“This is about two leaders, who are very passionate about the same consumer segment, partnering to use our collective strength to have an impact,” Brown said.

“We’re doubling down on leadership,” Morales added.

Tactical DNA

5.11 can expand beyond its “rabid, core consumer,” Brown said.

“There are consumers out there who will love this brand,” Brown said. “It’s in their DNA, but they may not be fully aware of it yet and that’s part of why I’m here.

“I bring a set of experiences and some tools to help the team think a little differently than they’ve thought about in the past, grounded in this idea of [knowing] who our consumer is and [needing] to understand what they expect.

“We’ve got to figure out how to exceed those expectations, which then creates a very evangelistic set of consumers, which then starts to feed on itself and starts to grow the brand itself,” Brown said.

The new CEO will lead 5.11 by adding new types of customers.

“I think one of the things you’ll see is us starting to develop a deeper connection with other communities,” Brown said, citing sectors such as off-roading and hiking.

Brown said that 5.11 will start to host more community events and meetups with these additional communities “to become part of the fabric of their lives and expose them to 5.11.”

“To [the point] where we’re just part of their communities and to be where they expect us to be,” Brown added.

Past store openings have included fitness competitions between local fire and police departments. Brown wants to figure out how to expand these experiences with customers at a larger scale beyond existing markets.

“It may be obvious when you look at somebody who’s on a police force or in the military, but you may not be thinking the same thing about somebody who’s out in the outdoors hiking in Moab, or riding a bike,” Brown said.

Luggage on a Mission

5.11 Inc.’s “purpose-built” designs have been applied to all kinds of apparel and gear, from jeans and jackets to dog harnesses and flashlights.

“You will continue to see us innovating,” former Chief Executive Francisco Morales said of his transition to executive chair.

The apparel company’s co-founder has typically kept an ear open to customer comments on any product, so 5.11 can jump on improving or reinforcing the design. There have also been items that unexpectedly surge in popularity from time to time.

One category that has recently experienced fast-paced growth has been its luggage line.
5.11’s duffel bags were originally designed with tactical input from traveling trainers of military and first responders, known as “road warriors,” and were introduced to the market several years ago.

Over the years, improvements have been made to the overall structure and design to increase durability and functionality for use by a variety of consumers, from tactical professionals to traveling athletes.

“I’m confident to say we make the best suitcases in the market to fit a wide range of missions,” Morales said.

The bags range in price from $52 to $285.

He noted that there hadn’t been any extra marketing for the product.

“A substantial amount of growth came from post-COVID ‘revenge travel’ as consumers started traveling again,” he said.

5.11 followed suit by ramping up inventory and advertising both on its website and in stores.

“We see that as one of the categories that will continue to be at the forefront of what you will see this year,” Morales said.

The post Stretching the Fabric at 5.11 appeared first on Orange County Business Journal.

The first local OluKai location opened at the Irvine Spectrum Center in February, marking the company’s store debut outside of Hawaii.

OluKai, which makes sandals, shoes, boots and golf shoes for men and women, has built up a core wholesale network in the last 20 years, with products sold in large and small specialty retailers such as REI, Nordstrom and Tommy Bahama.

In Orange County, the brand’s shoes can also be found at Shady Canyon Golf Club and the Seed People’s Market in Costa Mesa.

The company booted up a direct-to-consumer site in 2014 to spur digital sales and develop a better reach in the apparel market.

In 2019, OluKai moved to open its first pair of company-owned storefronts in Honolulu and Lahaina. With the islands’ inspiration behind its shoe design, and as the birthplace of one of the co-founders, Hawaii was chosen as the priority market to begin OluKai’s retail footprint.

Each set of shoes sold helps support its Ama OluKai Foundation, which gives back to various communities in Hawaii.

The shoemaker now operates six stores in Hawaii and has set its sights on expanding its brick-and-mortar outposts on the mainland.

California, Texas and Florida are its three largest consumer markets and are top of mind when it comes to opening more locations.

OluKai considers the stores as an opportunity to curate and control the retail experience for its consumer base. Each store includes custom artwork and specific architectural design to keep in line with the Hawaiian influence.

The physical locations allow the company to display a broader assortment of its sandals and sneakers and showcase more “premier products” such as artist collaborations and limited-edition exclusives.

As for the Irvine outpost, employees from the headquarters about 3 miles away now have a go-to spot for viewing and testing products in-market and observing consumer behavior.

Brand Portfolio

OluKai has invested in other expanding retail startups over the last several years and recently created an incubator company called Archipelago Companies to support their growth and distribution.

This portfolio now includes Roark apparel, Melin headwear and Kaenon eyewear, which are all based in OC.

All three brands work with specialty retailers as well.

Melin has been on a retail kick recently, with the luxury hatmaker opening its flagship store in Laguna Beach in 2022. It added a second location at Fashion Island last year.

Hats from Melin can be purchased at the new OluKai store.

Roark added a seventh retail hub at the Spectrum shopping center last month, next door to OluKai’s newest location. The other stores are located across California and include spots in Utah and Colorado.

These investments “reiterate OluKai’s ongoing commitment to maximizing the potential of independently owned, lifestyle brands that deliver innovative product concepts through tightly controlled distribution with best-in-class specialty retailers,” officials said in a statement.

The post OluKai Opens First Mainland Location in Irvine appeared first on Orange County Business Journal.

Founded in 2020 by three retail executives—including the co-founder of Tustin-based Mophie Inc.—who have built and managed multimillion-dollar businesses, Society Brands acquires smaller consumer-product startups to scale its market footprints and sales.

Society Brands now counts 11 brands under its umbrella. It has raised $230 million in funding.

Michael Sirpilla, Justin Sirpilla and Shawn Dougherty started the company in late 2020 at a time when in-store retail was tricky.

Consumer “patterns changed during COVID, and it made sense to focus all of our brands on the digital, e-commerce platforms,” Dougherty, also chief operating officer, told the Business Journal.

Along with Mophie, a maker of accessories for cellphones, Dougherty, an OC resident, also founded Newport Beach-based Volonic, a maker of high-end wireless chargers. Society Brands is based in Canton, Ohio, but has a local office.

Society Brands went on to acquire a group of companies with a significant presence on e-commerce platforms, such as Shopify, Amazon or their own direct-to-consumer sites.

Cleanomic, with an office in Santa Ana, creates and sells sustainable products for laundry, cleaning, kitchen and bathroom use. It has amassed 130,000 customers and includes a subscription service model.

Clarifion in Newport Beach has developed a line of pocket-sized air ionizers and purifiers, selling from $39 to $43 online.

Both firms sell their products using Shopify and Amazon already, and Society plans to build more awareness through email consumer targeting and expanding into social channels before jumping onto additional shopping platforms.

“We work on maximizing the marketing funnel to drive digital demand,” Dougherty said.

“There is always a piece of the funnel that needs to be refined,” she said of the playbook the team uses when growing a new company.

The acquisition increases Society’s employee count to over 50.

Impactful Products 

Society Brands considers itself a destination for sellers who want to stay with their brand post-sale.

Startup founders are offered the position of “brand president” along with the offer of rollover equity in the firm for if or when the team decides to exit an acquired company.

Dougherty describes the business as a “shared resource model” or “an ecosystem of solid pillars that support the founder and their pursuits to grow the business.”

“Brands are seeing double and triple growth in [sales] percentage,” she said of the current portfolio.

Other acquisitions include Primal Life Organics, Club EarlyBird, Capsule Supplies and Barnesmith.

Companies like Cleanomic and Clarifion, founded by Paul Kraus, offer “impactful products,” she said. “I liked the products and saw how they fit into people’s lives.”

The post OC Buys Increase Top Line For Society Brands appeared first on Orange County Business Journal.