Hurley Leases Warehouse as Part of Growth Bid
By JENNIFER BELLANTONIO
Costa Mesa-based Hurley International LLC plans to more than double its space with a new distribution center in Irvine.
The surfwear maker, which Nike Inc. bought last year for an estimated $100 million, has leased an 85,000-square-foot warehouse at 2900 McCabe Way near John Wayne Airport.
Hurley plans to move its product storage and shipping to Irvine from its 60,000-square-foot Costa Mesa headquarters.
Hurley plans to hire about 25 workers for the new warehouse, according to founder and Chief Executive Bob Hurley. The company now has about 220 workers, including 198 in Orange County.
“We are out of space,” Hurley said. “It’s been hard the last couple of months. There have been a lot of growing pains.”
The Irvine building is “completely modern,” with new computers and management software, Hurley said. The building once was home to a data center run by Florida’s now-defunct TelePlace Inc.
Hurley has contracted with Palo Alto-based CNF Inc.’s Menlo Worldwide to run the distribution center.
The company plans to keep its administrative offices in Costa Mesa and use the freed-up space there for marketing and design. Hurley recently hired a vice president of merchandising and design.
Hurley, which counts an estimated $70 million in yearly sales, has big growth plans.
The company has broadened from its men’s and girls clothing lines to shoes and sunglasses.
It also plans to make its first shipment to Europe in the spring, Hurley said.
Backed by Nike’s muscle, Hurley has been moving on a longtime goal to go global. Despite the “International” in the company’s name, Hurley hasn’t expanded abroad before now because of the costs involved.
The company so far has hired 15 people in Europe, plus a general manager, Hurley said. It also set up offices in Japan, Australia and New Zealand.
The company isn’t going with licensees in a bid to keep control of its brand and products, he said.
“I’m learning a lot. It’s been great,” Hurley said. “I’ve never run a company this big.”
Nike doesn’t “meddle in our business at all,” Hurley said.
But he said he has access to his parent company’s expertise and resources.
Hurley recently promoted Seth Ellison, former international director, to president. Prior to joining Hurley a year and a half ago, Ellison was general manager for Nike’s European apparel business.
“I realized the need for quicker change and the ability to execute that change,” Hurley said. “All the changes I want to do he knows how.”
Hurley said he has “a vision” for the company: “Whatever it means to be a great brand in the market worldwide.”
Hurley said he’d like his company to someday be taking in $1 billion to $3 billion in yearly sales.
The company has stiff competition from bigger rivals, including Irvine-based Billabong USA and industry leader Quiksilver Inc. of Huntington Beach, which is set to hit $1 billion in sales this year.
Hurley is taking pages from Quiksilver, which has created handfuls of brands and categories, from girls to golf to skatewear.
“We can be a big cool company and not be overdistributed,” Hurley said.
