Pacific Vector Holdings Inc., which announced plans in January to reduce its debt, has closed 14 of 34 action sports stores it acquired last year from Ryderz Compound Inc.
Pacific Vector did not say which stores were closed, but said the closings will accelerate a return to profitability by the company’s retail operations. The company began rebranding Xryderz and No Fear stores to its Prime Ride Shops banner last year.
Ryderz Compound operated 34 retail stores in five states, including California, Nevada, Arizona, Oregon and Hawaii as well as Xyrderz.com when it was acquired by Gatorz Inc. in April, 2013. Gators subsequently changed its name to Pacific Vector and went on to buy several skate brands. Ryderz Compound revenues reached $19 million in 2012, according to information released by Gatorz at the time of the acquisition.
“When we acquired Ryderz Compound retail stores last April, we knew it would be a turnaround effort, which was reflected in the purchase price of the stores,” Pacific Vector CEO Robert Reynolds said Thursday. “We spent the last 10 months analyzing the stores on a unit-by-unit basis and monitoring key performance metrics through the retail selling seasons. As a result of our findings, we have made the decision to close 14 stores in efforts to address the long-term health of the company. This action is the first part of a turnaround plan we are implementing to position Prime Ride Shop locations for growth and profitability. Our strategy on the retail side of the business is to remodel, rebuild and re-banner our twenty profitable properties to the Prime Ride Shop name.”
