Lost International has moved back to a licensing business model, partnering with an investment group led by Nick Agakanian, a manufacturer and inventory logistics operator.
Previously, Lost had a licensing agreement with the La Jolla Group, which ended in 2013 and Lost moved to a direct model.
Agakanian is a partner in a large logistics and warehouse company called Quetico that distributes many brands in the industry. He also finances some emerging brands.
He has formed a new company, Lost Holdings, and has taken on the role of CEO.
The Lost licensing agreement covers apparel, accessories and skateboards in all domestic and some select global markets.
Lost will continue to design, merchandise, market and sell the brand while getting help from the new partners with manufacturing, sourcing, financing and general expertise.
Joel Cooper, CEO of Lost International, told SES that the current state of the market spurred the move. Today, small brands in this space are expected to offer the same terms to retailers as large, publicly traded brands or giants like Nike.
“This is challenging given the fact that small brands don’t have the same levels of capital or infrastructure to support their growth,” he said. “Now, Lost can compete on a level playing field.”
Sales, marketing and merchandising will be run out of the current Lost offices in Irvine, while all shipping and warehousing will be done out of Chino, Joel said.
In a statement, Agakanian said, “Lost is a leading surfboard, skateboard, and apparel brand. Our mission is to capitalize on the strengths of the brand and provide infrastructure and logistics to grow the brand in the established distribution channels it currently operates in.”
Matt Biolos and Mike Reola, cofounders of Lost, support the move.
“With proper financing and a sophisticated infrastructure we are now ready to compete,” Matt Biolos said in a statement.
“Both parties stand to benefit from the new arrangement and this new fresh capital injection will give us the ability to capitalize on the success of our women’s line, “Sea Gypsies,” and expand to grow our distribution in the core stores we currently serve,” Mike Reola said.
