Iconic Texas retailer Dickies has made the shock announcement that it is moving its headquarters to California after more than 100 years, leaving fans and city leaders stunned.
The popular clothing brand has abandoned its workwear foundation and uprooted its headquarters to join sister company Vans in Orange County, California.
It’s a far cry from the company’s Fort Worth roots and a marked departure from other companies that are increasingly fleeing the Golden State amid high taxes.
The company, which was founded in the Texas city in 1922, has become a favorite brand among fashionable Gen Z and millennials in recent years.
A spokesperson for Fort Worth’s economic development department, Andrea Duffie, said Fort Worth Star cable that Dickie’s parent company, VF Corp, “did not engage with the city or our partners to explore solutions” before announcing the move.
“Ultimately, this was a decision made by VF Corp, Dickie’s parent company, as a result of their current corporate structure,” she said.
Robert Allen, president and CEO of the Fort Worth Economic Development Partnership, said, “Fort Worth has enjoyed its relationship with Dickies and we wish them the best.
“It’s worth noting that since 2005, more than 230 companies have left California, and more than half of those have moved to Texas.”
The company announced their shocking move from its headquarters in Fort Worth, where the blue collar workwear company was founded, to join Vans’ headquarters in Orange County, California.
Companies like Tesla announced their headquarters move from Silicon Valley, California, to Austin, Texas, in 2021. CEO Elon Musk made an unofficial announcement on then-Twitter after a high-profile feud with local politicians who ordered him to close Tesla’s Fremont factory .
Musk also mentioned a lower cost of living for his employees, adding that “there’s a limit to how big you can scale it in the Bay Area.” In Austin, our facility is about five minutes from the airport and 15 minutes from downtown.”
Earlier this year, Chevron also announced they would be moving from San Ramon to Houston by the end of 2024. Austin-American statesman.
Tech powerhouse Oracle also made the move from Silicon Valley to Austin in 2020, as did previous moves by tech company HP and automaker Toyota.
A closer look at the finances of Dickie’s parent company, VF Corp, may provide insight into their shocking decision.
The move to Costa Mesa in Orange County is expected to impact approximately 120 employees and will be completed by May of next year.
However, Dickie’s Forth Worth distribution center, warehouses and retail locations remain open.
As part of the move, Dickies will share space at its headquarters with footwear company Vans, where it is hoped the combined companies will create a space where “creativity and the sharing of best practices can thrive through great collaboration and connections,” according to a statement from VF spokeswoman Ashley McCormack.
The move to Costa Mesa in Orange County is expected to affect approximately 120 employees and be completed in May. Dickie’s Forth Worth distribution center, warehouses and retail locations remain open
Robert Allen, president and CEO of the Fort Worth Economic Development Partnership, said, “It’s worth noting that since 2005, more than 230 companies have left California and more than half of those have moved to Texas.”
Founded in Pennsylvania in 1899 as a manufacturer of gloves and mittens, VF Corp has evolved from silk to denim over the past 125 years before launching active lifestyle and workwear in the 2000s.
The company acquired Dickies in 2017 for $820 million in cash, but despite its continued evolution, the company’s net sales have declined annually since fiscal 2022, according to Fort Worth Star cable.
At an investor day event held in Denver on Oct. 30, VF CEO Bracken Darrell warned that cost cuts were on the way as the company plans a return to growth.
In mid-2023, Darrell was named president and CEO of VF and has been described as a corporate turnaround specialist.
His main focus was on reducing costs, strengthening the company’s balance sheet and improving US sales.
Darrell has many successful business turnarounds to his name, including the Old Spice brand at Protector & Gamble, and has been working on his plan for VF for the past year and a half.
VF CEO Bracken Darrell has been described as a corporate turnaround specialist
The iconic Texas retailer has become a favorite brand among fashionable Gen Z and Millennials in recent years (photo: a still from a Dickies commercial)
Dickies, known for its workwear, plans to maintain “a strong employment presence” in Fort Worth, with employees working in warehouses in the Metroplex, a company spokesperson said.
The company says it is on track to save $300 million in costs by the end of fiscal 2025 in March.
Just last year, Dickies moved from its historic West Vickery Boulevard campus to a tower in downtown Fort Worth, costing it about $4.5 million in renovation costs.
On November 13, S&P Global downgraded VF’s credit rating to junk status due to continued sales declines at its four biggest brands: Dickies, The North Face, Timberland and Vans. East Bay Times reported.
In the second fiscal quarter, Dickies saw revenue decline 11 percent to $152 million, compared to $171 million in the same period a year earlier.
In the same quarter, Vans saw sales fall 11 percent to $667 million, The North Face fell 3 percent to $1.09 billion and Timberland fell 3 percent to $475 million.
VF Corp has said the change “helps us revitalize Dickies so we can continue the brand’s legacy for years to come,” Fort Worth Star Telegram reported.
Despite the move, Dickies plans to maintain “a strong employment presence” in Fort Worth, with employees working in warehouses throughout the Metroplex, a company spokesperson said.