North Face to move — 650 jobs at stake

The North Face is moving out of the Bay Area, taking 650 jobs with it.

Parent company VF Corporation announced its separation into two independent, publicly traded companies on Monday. One company yet to be named, which will concentrate on denim and include brands Lee and Wrangler, will remain in Greensboro, N.C., where VF is located. The second company, to retain the VF Corporation name, will focus on activewear and footwear and be headquartered in Denver.

The North Face, an outdoor activewear maker founded in San Francisco in 1966 as a climbing equipment store, is based in Alameda, along with VF’s Global Innovation Center for technical fabrics and JanSport, a maker of bags and backpacks. Both businesses

will move to Denver, a company spokeswoman said.

The Alameda businesses employ 650. All roles will move to Denver by 2020, the spokeswoman said, resulting in the closure of the Alameda locations. It is not clear whether the move will result in layoffs.

VF’s decision to separate its denim brands from its activewear businesses stems from a shift in consumer preferences toward activewear, which has fueled growth at companies like Lululemon, Under Armour and Nike. Activewear sales rose 10 percent for the year that ended in June, according to NPD Group, a market research firm. Jeans sales rose 4 percent in the same period.

VF expects 6 to 8 percent revenue growth in its outdoor business this fiscal year and 13 to 14 percent growth in its active division. Revenue in denim is expected to be flat, the company said last month.

The rise of North Face, founded by Doug and Susie Tompkins (who went on to found Esprit), coincided with a mid-1960s surge of interest in hiking, mountaineering and other outdoor activities. The company provided the gear and the wardrobe for both. Its practical and performance-oriented fleece vests and backpacks quickly became part of the Bay Area weekend warrior lifestyle, as well as an ultracasual daily uniform for tech workers and venture capitalists.

The company has made recent moves to appeal to women, opening two female-focused shops in the Bay Area and one in Minnesota this spring.