Shock as iconic blue collar clothing brand moves HQ from Texas to California

Iconic Texas blue collar retailer Dickies has made the daze announcement that it is moving its HQ to California after much than 100 years, leaving fans and metropolis leaders dumbfounded. 

The fashionable covering marque has switched gears from its workwear foundations and uprooted its office to articulation sister institution Vans successful Orange County, California.

It is simply a acold outcry from the company's Fort Worth origins, and a marked departure from different companies who person been increasingly fleeing the Golden State amid precocious taxes. 

The company, which was founded successful the Texan metropolis successful 1922, has morphed into a favourite marque among fashionable Gen Z and millennials successful caller years. 

A spokesperson for Fort Worth's economical improvement department, Andrea Duffie, told Fort Worth Star Telegram that Dickie's genitor company, VF Corp, 'did not prosecute with the City oregon our partners to research solutions' earlier announcing the move. 

'Ultimately, this was a determination made by VF Corp, Dickie's genitor company, arsenic a effect of their existent firm structure,' she said. 

Robert Allen, president and CEO of the Fort Worth Economic Development Partnership, said: 'Fort Worth has enjoyed its narration with Dickies and we privation them well. 

'It’s worthy noting that since 2005, much than 230 companies person near California and much than fractional of them person relocated to Texas.' 

Companies similar Tesla announced their HQ determination from Silicon Valley, California, to Austin, Texas, successful 2021. CEO Elon Musk made an unofficial announcement connected then-Twitter aft a precocious illustration spat with section politicians who ordered him to adjacent Tesla's Fremont plant. 

Musk besides cited a little cost of living for his employees and added that 'there's a bounds to however large you tin standard it successful the Bay Area. In Austin our mill is similar 5 minutes from the airport, 15 minutes from downtown.' 

Earlier this year, Chevron besides announced they would beryllium moving from San Ramon to Houston by the extremity of 2024, reported the Austin American Statesman. 

Tech powerhouse Oracle besides made a determination successful 2020 from Silicon Valley to Austin, arsenic good arsenic earlier moves from exertion steadfast HP and carmaker Toyota. 

A person look astatine Dickies genitor company, VF Corp's finances, tin springiness an penetration into their daze decision. 

The determination to Costa Mesa successful Orange County is expected to interaction astir 120 employees and beryllium completed by May adjacent year.

Dickie's Forth Worth organisation center, warehouse and retail locations, however, volition stay open. 

As portion of the move, Dickies volition beryllium sharing headquarter abstraction with footwear institution Vans, wherever it is hoped the combined companies volition make a abstraction wherever 'creativity and champion signifier sharing tin thrive done large collaboration and connections', according to a connection from VF spokeswoman Ashley McCormack. 

VF Corp, founded successful Pennsylvania in 1899 arsenic a mitt and mitten manufacturer, has evolved implicit 125 years from silk to denim earlier picking up progressive manner and workwear successful the 2000s. 

The corp acquired Dickies successful 2017 for $820 cardinal successful cash, but, contempt its continuing evolution, the company's nett gross has declined annually since its 2022 fiscal year, according to Fort Worth Star Telegram. 

At an capitalist time lawsuit held successful Denver connected October 30, VF CEO Bracken Darrell warned outgo cutting was coming arsenic the institution planned a instrumentality to growth.  

In mid-2023, Darrell was appointed VF's president and CEO and is described arsenic a firm turnaround specialist. 

His main absorption has been lowering costs, strengthening the company's equilibrium expanse and improving its US sales.    

Darrell has been credited with galore palmy institution turnarounds, including that of the Old Spice marque astatine Protector & Gamble, and has spent the past twelvemonth and a fractional moving connected his program for VF. 

The institution says it's connected way to chopped $300 cardinal successful costs by the extremity of its 2025 fiscal twelvemonth successful March. 

Just past year, Dickies relocated from its historical West Vickery Boulevard field to a downtown Fort Worth tower, costing it astir $4.5 cardinal successful renovations. 

On November 13, S&P Global downgraded VF's recognition standing to junk presumption due to the fact that of ongoing gross declines successful its apical 4 brands: Dickies, The North Face, Timberland and Vans, the East Bay Times reported.

In its 2nd fiscal quarter, Dickies saw gross autumn 11 percent to $152 cardinal - from $171 cardinal successful the aforesaid year-earlier period. 

In the aforesaid quarter, Vans saw gross autumn 11 percent to $667 million, The North Face autumn 3 percent to $1.09 billion, and Timberland autumn 3 percent to $475 million. 

VF Corp person said the alteration with 'help america revitalize Dickies truthful we tin transportation connected the brand's practice for years to come,' reported Fort Worth Star Telegram. 

Despite the relocation, Dickies plans to support 'a beardown employment presence' successful Fort Worth with employees moving astatine warehouses passim the Metroplex, according to a institution spokesperson.