2 Key Ocean Pacific Officials Resign Posts

The new chief executive officer of Ocean Pacific Sunwear Ltd., Orange County’s largest designer and licenser of surf wear, has departed after only a month on the job, the privately owned company confirmed Tuesday.

Lee Katz, a financial consultant whose appointment to OP was announced April 1, decided to leave by “mutual agreement,” said OP lawyer Michael Balmadges. His last day was April 24.

Another top OP official has also left. Bonnie Crail, vice president for marketing, departed Friday to take a position with PacTel Cellular in Irvine, Balmadges said. Crail was one of the OP executives who handled the company’s most important promotional event, the annual OP Pro surfing tournament in Huntington Beach.

Balmadges praised Crail as a “good employee (who) gave us good service.” She thoroughly briefed her assistants to ensure that the surfing contest goes smoothly this June.

Crail said she is “exhilarated and excited” about her new job. Katz could not be reached.

Katz, who lacked previous surf wear experience, was brought in as chief executive officer to handle day-to-day operations of OP under Chairman Jim Jenks, a co-founder of the company. Balmadges said Jenks would assume the chief executive’s duties, and that no search is underway for a replacement.

He said that Katz is a specialist in refinancing debt who had accomplished the project that the company needed to perform. Balmadges declined to be more specific.

Katz was hired about a month after OP broke off buyout talks with Sequoia Associates, a Menlo Park venture capital firm. Crail said at the time that despite the prolonged sales negotiations, few of OP’s 175 employees had left the firm.

The company still faces a lawsuit filed by its largest shareholder, Elaine Ornitz, who alleged last year that OP is “hopelessly insolvent.” Company officials denied Ornitz’ claim. The lawsuit is still active, and a lawyer for Ornitz declined comment Tuesday on Katz’ and Crail’s departures.

“It’s tough out there right now,” Balmadges said. “We’re holding our own.”