Updated 10:24 with the latest information about DNA ownership.
Pacific Vector, which owns an operating company for DNA in addition to Ryderz Compound and Gatorz, has filed for Chapter 7 liquidation in California.
The bankruptcy filing comes nine months after Pacific Vector acquired what at the time was a controlling interest in DNA, an arrangement that has since changed.
In May, PVH DNA, the operator of the business, agreed to rescind its 51% interest in DNA LLC, the holder of the intellectual property. It also gave up the license that PVH DNA had to sell DNA brands. The company also said in May it had terminated all PVH DNA employees with the exception of an accounting person and had six months to sell the remaining licensed product.
As part of the May agreement, Dyrdek Enterprises, which at the time owned 46.5% of DNA LLC, agreed to take over stewardship of DNA LLC and pay the final payroll for the PVH DNA employees.
Today, Pacific Vector said all of Pacific Vector’s operations will cease and the public company will be filing for voluntary bankruptcy proceedings in Canada. It specifically listed PVH DNA, the operator of the business, as one of the subsidiaries filing for bankruptcy. To be clear, DNA LLC is not part of the bankruptcy.
The company blamed the bankruptcy on financial losses, defaults by some lenders and an inability to obtain financing.
All of the directors and officers of Pacific Vector have resigned.
Pacific Vector acquired a controlling interest in DNA in Oct. 2013 from Rob Dyrdek, a deal that has now changed. At that time, Pacific Vector said Rob would remain a minority partner of DNA, which owns skate brands Alien Workshop, Habitat and Reflex.
In 2013, Pacific Vector bought DNA for 250,000 stock options and a $1.5 million earnout payable at 8% of DNA branded sales, with the first payment due twelve months from the closing of the transaction, according to a company press release.
Rob acquired DNA from Burton in 2012. Burton acquired the brand in 2008.
Rob told SES when he bought DNA that he felt a huge emotional connection to the founders and to the brand, which he has been with through his entire journey from his early days as an unknown Midwest skater to a mega star.
It is unclear what is happening now with DNA and to the DNA team, longtime veterans of the skate industry. SES is trying to find out additional information.
Editor’s note:
Executive Edition members can read the keynote interview SES did with DNA’s Chris Carter that talked about the brand’s history and future at the IASC Skate Summit in 2011.
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