Company Leaves; Founder Stays : Chairman of Media Five Starting New Design Firm

Media Five, an award-winning Honolulu design and architectural firm, at one time expected to move its headquarters to the Costa Mesa office it opened about 18 months ago. Instead, it is pulling out at the end of the month.

But Thomas R. Pagliuso, the company’s founder and chairman, is remaining behind with the entire 15-member office to form Thomas R. Pagliuso Design Associates.

The amicable parting of ways came after Media Five’s board decided to curtail operations in Costa Mesa because the office was not performing up to expectations, said Evan Cruthers, the company’s president.

Pagliuso said he had disagreed with the decision, contending that an 18-month period was not long enough to make the operation wholly successful.

“It takes 3 years or more, especially since we came over here cold without any major projects and faced a lot of competition,” Pagliuso said.

After Pagliuso resigned last week, Media Five decided to close down its office, Cruthers said.

No division of clients has been settled yet, but Cruthers and Pagliuso said they hope to continue working together on some projects.

“I have projects in Honolulu, and I wouldn’t go to any other firm for help,” Pagliuso said. And Cruthers praised Pagliuso as a “fantastic designer and great person.”

Pagliuso, who owns close to 25% of Media Five’s stock, will be bought out under provisions in company bylaws.

A California native and USC graduate, Pagliuso opened an office in Honolulu in 1968, but he bought out his partners 4 years later when they wanted to close it.

He formed Media Five and, with a growing number of associates, built it into an international operation that specialized in designing resort hotels.