Lunada Bay to Dive Into Market With Its Own Line of Swimwear

Sometimes, when the big companies team up, the little folks get squashed.

And Susan Crank doesn’t intend to be one of them.

The chief executive of Lunada Bay Corp., licensee for Mossimo Inc. swimwear, doesn’t know yet just how the new licensing deal between Mossimo and Target Stores will affect her business. But rather than tread water while she waits to find out, Crank is planning to create a new revenue stream by launching Lunada Bay’s own swimwear line.

The line, which will be in stores in July, is called Becca, after designer Rebecca Virtue.

Still, it’s far from clear how smaller licensees will fare once Target has the exclusive right to sell Mossimo sportswear and some other products in its stores. The deal with Target, which begins in February, does not supersede Mossimo’s existing licensing agreements, but some wonder whether current licensees will still be able to sell to department stores once the brand becomes associated with a discount chain.

This is a big question for Lunada Bay, which sells to department stores such as Bloomingdale’s and Nordstrom, since the Anaheim company derives nearly 80% of its sales from the Mossimo brand.

Some higher-end department stores had considered Mossimo a strong label, despite the Irvine company’s ongoing struggles. And while they won’t be able to sell the sportswear after the Target deal takes effect, they could still sell the swimwear, the brand’s best-selling category.

“Mossimo . . . is one of our top lines in women’s active wear, specifically in fitness and swimwear,” Nordstrom spokeswoman Leslie Harris said. “We’ll continue to carry it on our floor at this time. But because [the Target-Mossimo deal] was just announced, it’s a little early to make a decision about what we will be doing [longer term].”

Of course there’s always the possibility that Target will try to cut a deal with existing licensees that would allow it to buy from them and sell the products only in Target stores.

Target said it is currently considering that option.