The loss of another fast-growing company could spur soul-searching over the Bay Area’s cost of doing business, whether it’s San Francisco’s $1.5 million median home price, high cost of living or escalating labor costs.
Upscale jeans maker True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, making it the latest Southern California apparel firm to falter as people embrace online shopping. But True Religion said that in tandem with filing under Chapter 11 of the bankruptcy laws, its owner, TowerBrook Capital Partners, a private equity firm, reached a proposed deal with lenders to slash True Religion’s debt by about three-quarters as it continues operating.
Over the past 15 years, 1.5 million more people have left California than have moved here from other states, according to estimates from the California Department of Finance. Remarkably, even in the face of this outflow, California still experiences net gains of college graduates (those with at least a bachelor’s degree). Over the past five years, California ranks second among all states in net gains of college graduates from other states, even as it ranks first in net losses of less educated adults.
The company [Avnet] is closing two of its three Silicon Valley facilities and laying off nearly 100 employees as it moves its manufacturing operations out of state.
Kellogg Co., the multinational food producing company, plans to lay off 230 employees and close its Northern California sales office in Roseville.