Iconic Texas blue collar retailer Dickies has made the shock announcement that it is moving its HQ to California after more than 100 years, leaving fans and city leaders dumbfounded.
The popular clothing brand has switched gears from its workwear foundations and uprooted its headquarters to join sister company Vans in Orange County, California.
It is a far cry from the company’s Fort Worth origins, and a marked departure from other companies who have been increasingly fleeing the Golden State amid high taxes.
The company, which was founded in the Texan city in 1922, has morphed into a favorite brand among fashionable Gen Z and millennials in recent years.
A spokesperson for Fort Worth’s economic development department, Andrea Duffie, told Fort Worth Star Telegram 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 well.
‘It’s worth noting that since 2005, more than 230 companies have left California and more than half of them have relocated to Texas.’
The company announced their shock move away from their HQ in Fort Worth where the blue-collar workwear company was founded to join the Vans headquarters in Orange County, California
Companies like Tesla announced their HQ move from Silicon Valley, California, to Austin, Texas, in 2021. CEO Elon Musk made an unofficial announcement on then-Twitter after a high profile spat with local politicians who ordered him to close Tesla’s Fremont plant.
Musk also cited a lower cost of living for his employees and added that ‘there’s a limit to how big you can scale it in the Bay Area. In Austin our factory is like five minutes from the airport, 15 minutes from downtown.’
Earlier this year, Chevron also announced they would be moving from San Ramon to Houston by the end of 2024, reported the Austin American Statesman.
Tech powerhouse Oracle also made a move in 2020 from Silicon Valley to Austin, as well as earlier moves from technology firm HP and carmaker Toyota.
A closer look at Dickies parent company, VF Corp’s finances, can give an insight into their shock decision.
The move to Costa Mesa in Orange County is expected to impact about 120 employees and be completed by May next year.
Dickie’s Forth Worth distribution center, warehouse and retail locations, however, will remain open.
As part of the move, Dickies will be sharing headquarter space with shoe company Vans, where it is hoped the combined companies will create a space where ‘creativity and best practice sharing 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 impact about 120 employees and be completed by May – Dickie’s Forth Worth distribution center, warehouse and retail locations will 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 them have relocated to Texas’
VF Corp, founded in Pennsylvania in 1899 as a glove and mitten manufacturer, has evolved over 125 years from silk to denim before picking up active lifestyle and workwear in the 2000s.
The corporation acquired Dickies in 2017 for $820 million in cash, but, despite its continuing evolution, the company’s net revenue has declined annually since its 2022 fiscal year, according to Fort Worth Star Telegram.
At an investor day event held in Denver on October 30, VF CEO Bracken Darrell warned cost cutting was coming as the company planned a return to growth.
In mid-2023, Darrell was appointed VF’s president and CEO and is described as a corporate turnaround specialist.
His main focus has been lowering costs, strengthening the company’s balance sheet and improving its US sales.
Darrell has been credited with many successful company turnarounds, including that of the Old Spice brand at Protector & Gamble, and has spent the past year and a half working on his plan for VF.
VF CEO Bracken Darrell has been described as a corporate turnaround specialist
The iconic Texas blue collar retailer has become a favorite brand among fashionable Gen Z and millennials in recent years (Pictured: A still from a Dickies commercial)
Dickies, which is known for its workwear, plans to keep ‘a strong employment presence’ in Fort Worth with employees working at warehouses throughout the Metroplex, according to a company spokesperson
The company says it’s on track to cut $300 million in costs by the end of its 2025 fiscal year in March.
Just last year, Dickies relocated from its historic West Vickery Boulevard campus to a downtown Fort Worth tower, costing it roughly $4.5 million in renovations.
On November 13, S&P Global downgraded VF’s credit rating to junk status because of ongoing revenue declines in its top four brands: Dickies, The North Face, Timberland and Vans, the East Bay Times reported.
In its second fiscal quarter, Dickies saw revenue fall 11 percent to $152 million – from $171 million in the same year-earlier period.
In the same quarter, Vans saw revenue fall 11 percent to $667 million, The North Face fall 3 percent to $1.09 billion, and Timberland fall 3 percent to $475 million.
VF Corp have said the change with ‘help us revitalize Dickies so we can carry on the brand’s heritage for years to come,’ reported Fort Worth Star Telegram.
Despite the relocation, Dickies plans to keep ‘a strong employment presence’ in Fort Worth with employees working at warehouses throughout the Metroplex, according to a company spokesperson.
