Skullcandy, Inc. announced the company is taking steps to better align its product, marketing and sales functions in order to strengthen its position as the leading performance and lifestyle audio company driven by the creativity and attitude of youth culture. The company also announced certain executive changes and the commencement of a search for a new chief financial officer.
As part of the process, the company is relocating its marketing,
creative, business development and legal departments, as well as certain
sales and international personnel to its headquarters in Park City,
Utah, and will close the office in San Clemente, California, which has
historically housed significant portions of these functions.
Darling, President and Chief Executive Officer commented, "Bringing
together our teams in Park City will allow us to better focus our go to
market process and ensure that our products, messaging and distribution
are aligned with our target consumer. It will be fantastic to have these
three critical functions collaborating under one roof and represents an
important step toward executing our overall long-term strategic plan.
It will also enhance our ability to attract top talent and build an even
stronger culture, as we look to be one of the most desirable employers
in the audio and youth culture segment. With three world-class mountain
resorts, hundreds of miles of trails and significant technology and
creative influences, Park City provides us a fantastic base that is
rooted in our authenticity as an active and creative brand born on the
mountains and in skate parks."
The company expects to record an
associated pre-tax, restructuring charge in the range of $3.0 million to
$3.8 million, of which $500 thousand to $1 million is estimated to be
incurred in the second quarter of 2013. The company has approximately 30
employees in San Clemente, the majority of whom will be given the
opportunity to relocate with the company's assistance and continue
working in the Park City office. The company plans to begin implementing
the proposed changes this summer and expects the moves to be complete
by early fall to minimize any business disruption.
company also announced that Sam Paschel, currently Executive Vice
President of Product Development and Merchandising has been promoted to
the newly created position of Chief Commercial Officer, where he will
oversee the operations of both the product and demand creation teams.
commented, "Since joining Skullcandy last September Sam has had a very
positive impact on improving our product development strategy and
spearheading changes in merchandising so we can better excite and serve
our consumer. As we bring our product, marketing and sales teams
together in Park City, I'm confident Sam is the right person to oversee
further alignment of our product, merchandising and demand creation
The company also announced that it has commenced a
search for a new Chief Financial Officer following Kyle Wescoat's
decision to resign in order to pursue opportunities closer to his home
in Southern California. Wescoat will remain with the company through
approximately September 2013 while it searches for his successor.
want to thank Kyle for his efforts during this period in the company's
history," said Mr. Darling. "He has been a trusted asset during my first
few months on the job and I'll continue to rely on his financial acumen
and leadership to ensure a smooth transition and help improve upon our
Skullcandy is known for its audio and gaming
headphones and other accessory related products under the Skullcandy,
Astro Gaming and 2XL by Skullcandy brands.
Source Skullcandy, Inc through SportsOneSource