Ocean Pacific Swimwear Ltd., a Tustin surf-wear maker, said Friday that it plans to reacquire the Jimmy'Z surf-wear trademark that it sold to another Tustin firm, 199Z Inc., last April.
"199Z has been unable to meet its obligation to (Ocean Pacific)," said Jim Jenks, Ocean Pacific's chief executive. "(Ocean Pacific) will reacquire the trademark and oversee the brand going forward."
"It is our understanding that 199Z Inc. intends to complete its (current) holiday shipping," Jenks said in a statement.
Officials of 199Z could not be reached for comment.
199Z, a Tustin surf-wear maker, purchased the Jimmy'Z line for an undisclosed amount of cash and notes. Ocean Pacific took an ownership interest in the Jimmy'Z trademark pending repayment of the notes by 199Z. When 199Z was unable to pay off the notes by the due date, ownership of the trademark reverted back to Ocean Pacific, said Michael Balmages, Ocean Pacific's general counsel.
Under state law, Ocean Pacific is required to conduct a foreclosure sale of the Jimmy'Z trademark, Balmages said. The sale is set for Nov. 20.
Balmages said Ocean Pacific, which hopes to acquire the trademark itself, has received inquiries from seven prospective buyers. He said, however, that Ocean Pacific would be willing to sell the trademark for the right price.
Ocean Pacific will take over distribution of Jimmy'Z merchandise in the spring, Jenks said.
If Ocean Pacific retains the Jimmy'Z trademark, it would operate it separately from the rest of its licensing business, including the Ocean Pacific and Newport Blue brands, Balmages said.
Ocean Pacific, which in recent years has shifted from manufacturing to licensing its products, acquired Jimmy'Z in November, 1987, from Jimmy Ganzer and Sepp Donahower, founders of the trendy surf-wear maker.
Balmages said Ocean Pacific expects sales to surpass $300 million in 1990.