Costa Mesa-based Paul Frank Industries Inc. hasn’t let a legal squabble with its namesake founder slow it down.
The clothing designer, known for its cartoonish monkey and other cheeky designs, is moving on a push to open more of its own stores.
Paul Frank is set to open two stores in the Middle East by fall and relocate its Los Angeles shop to a bigger space on Melrose Avenue later this month, according to the company.
It opened two shops earlier this year in Greece and Thailand, bringing its total to 16.
“Several more stores on the international front are being drawn up as we speak,” President Ryan Heuser said. “We are aggressively looking for additional retail opportunities in New York City as well as fashion-oriented cities within the U.S.”
Such are things at the clothing maker almost a year after cofounder and designer Paul Frank Sunich left.
Since then, Sunich, a major shareholder, has sued his former partners seeking to dissolve the company. His two lawsuits claim he was fired without reason and that he is being denied a share of the profits.
Last year, the company issued a statement calling the suits “completely meritless and untrue” and that it always was “fair” to Sunich.
The company has been “diligently working” toward its 10-year anniversary, which hits next year, Heuser said.
The company debuted in 1997, two years after Sunich started sewing wallets and other items for friends out of scrap vinyl from Heuser’s garage.
“We have really stuck true to our roots from day one,” Heuser said. “We make gifts from the heart that people want to buy for others. Paul Frank hasn’t changed from our days in the garage.”
But the popularity of the company’s designs,particularly Julius the monkey, which is sold on clothes and other items around the world,has forced it to grow up.
In the past year, Paul Frank hired about 10 workers and expects to hire at least five more by year’s end, Chief Executive John Oswald said. Paul Frank counts about 140 employees in all.
“We have added some key positions in the last year from merchandising to marketing to sales,” Oswald said. “As we keep growing there will be some needs in certain departments to support our growth.”
Paul Frank recently moved some of its warehousing overseas to free up space at its headquarters, Oswald said.
The company, which counts yearly sales of about $45 million, is expecting a 10% increase in sales this year and a 20% jump next year, Oswald said.
A big driver of the growth: Small Paul, the company’s clothing line for girls and boys ages 2 to 7, Heuser said.
Paul Frank also is getting ready to launch a line for those ages 10 to 16, something retailers have been asking for.
The collection, called Julius and Friends, is geared toward girls. The company also sells clothes for men and women ages 18 to 25.
The company now has “a well rounded lifestyle collection,” Heuser said.
Paul Frank sells its clothes in surf shops, such as Huntington Beach-based Jack’s Surfboards and mall stores of Anaheim-based Pacific Sunwear of California Inc. They’re also found in boutiques and departments stores, such as Nordstrom.
The company wants to sell more through existing retailers rather than take on new ones, Heuser said.
The strategy has helped Paul Frank “keep the majority” of its accounts “by not over distributing our brand.”
“We are keeping the same tight controls on our distribution and still say ‘no’ more than we say ‘yes,'” Heuser said. “The sky is the limit in terms of our growth potential. We just need to stick to our growth plan and the rest will happen as it should in its proper time.”
