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Mossimo Inc. has left OC for Santa Monica

Mossimo Giannulli, head of Mossimo Inc., moved his struggling fashion design business out of Orange County to Santa Monica last week.

Jody Love, the company’s vice president of finance, said the new offices are located on Broadway and 20th streets in Santa Monica, but declined to comment further on the move.

Giannulli, who lives in Bel Air, has wanted to move the business out of Irvine and closer to his home for more than a year, according to sources who’ve worked with the company. The Santa Monica site houses Mossimo’s remaining staff of about 10 people.

The move caps what’s been a difficult year for Mossimo, which once was compared to the likes of Tommy Hilfiger and Calvin Klein.

The apparel company, whose stock was delisted from the New York Stock Exchange in May, laid off most of its 100 employees in April amid heavy losses. A retail store at South Coast Plaza in Costa Mesa was closed. Then former Tommy Hilfiger executive Edwin Lewis left as Mossimo’s chief executive. The stock, now traded over the counter, is at around 1.

Mossimo is pegging its hopes for a turnaround on a three-year licensing pact signed in March with Target Corp. to produce clothes under the Mossimo label. Mossimo Giannulli’s small design staff is working with Target employees on the new line in preparation for its February launch.

For Mossimo, the Target deal could bring in around $10 million in annual royalties, though payments aren’t set to kick in until May. Meanwhile, the company landed a $9 million line of credit in July to stay afloat.

Mossimo, which was founded as a surfwear company in 1987, could expand its pact with Target to include items such as fragrances and home products.

Garden Grove-based Bodywaves Inc., which designs and manufacturers private label apparel for Target, is set to produce Mossimo board shorts, while former Mossimo licensee Lunada Bay in Anaheim will continue to design and produce swimwear under the Mossimo label for Target.

Mossimo has a long way to go, though. For the second quarter, the company saw sales drop by nearly half to $6 million from the year-ago period. It reported a $2.8 million loss for the second quarter, vs. $5.5 million red ink a year ago. As of June 30, Mossimo counted $251,000 in cash, $1.1 million in assets and $8.9 million in liabilities. n

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