Perry Ellis to buy Gotcha

Miami-based clothier announces plans to buy Newport Beachbased Gotcha for an undisclosed amount.Gotcha International, a Newport Beach surfwear company with roots in Orange County’s old school, is set to become a part of Perry Ellis International Inc.’s portfolio.

Miami-based Perry Ellis announced plans to buy Gotcha’s trademarks and licenses Monday. According to Perry Ellis, the deal is expected to close in January. Terms were not disclosed.

Two years ago, Perry Ellis acquired the trademarks of Redsand, another Southern California surfwear company.

Under the deal, Perry Ellis is set to take ownership of the Gotcha and GirlStar trademarks. Since 2002, Gotcha’s business model has centered on licensing the company’s trademarks, Gotcha president Donald Grier said.

Gotcha was founded in 1978 in Laguna Beach. In the 1980s, it was hard to live in Southern California without seeing young people clad in Gotcha T-shirts bearing the image of Fishman, a half-fish, half-human creature carrying a flag. According to the company’s website, Gotcha’s worldwide sales reached $150 million in 1990.

Gotcha has lost much of the brand loyalty among surfers that the company enjoyed during the 1980s, surf shop owner Gregg Steiner said. Steiner, who owns the Green Room in Newport Beach said he does not carry any Gotcha brands in his store.

“When I bought the surf shop [in 2001], I was reintroduced to all of the brands. It [Gotcha] wasn’t one of them,” Steiner said.

Gotcha merchandise is sold primarily in general retail stores rather than surf shops, Grier said. Gotcha’s website advertises that the company’s merchandise can be found in stores such as Macy’s, Mervyn’s and Sears.

Gotcha emerged from bankruptcy about 18 months ago when the company paid all of its creditors in full, Grier said. Gotcha filed for bankruptcy in 2002.

Five people are currently employed at Gotcha’s Newport Beach office, and its founders are no longer with the company, Grier said. Grier will not stay with Gotcha after the deal goes through.

Perry Ellis is expected to start selling Gotcha-trademarked gear in the spring of 2007.