Ten Questions With La Jolla Group CEO Toby Bost

josh hunter

• February 02 2009
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The past month has been a busy one for La Jolla Group CEO Toby Bost (above left). The company recently hired longtime Quiksilver executive Bill Bussiere (above right) as President and CFO, brought on the Blackhart Brotherhood to contribute to the design direction at …Lost, and is planning to move into a new facility in late spring/ early summer. Transworld Business caught up with Bost to hear more about the decision to bring Bussiere on board, his opinion on recent trade shows, and how the beginning of 2009 has been for the La Jolla Group’s stable of brands. Here’s what he had to say.

As President and CFO, how will Bill Bussiere contribute to the executive team at La Jolla Group?

Bill brings extensive financial experience to our executive team. He will assist us with mapping out the financial side of the business to accommodate the long and short-term growth plans at the LJG. Bill’s previous work experience brings the “know how” to negotiate and accommodate rapid growth. Beyond finance, he has a ton of operational experience and has led a number of acquisitions. The LJG’s growth plan is as much M&A based, as it is organic. With the strength of the brands within the LJG, we are going to attract some pretty interesting prospects and propositions down the road, and we are stoked have a veteran like Bill leading those discussions.

How does the President position fit into the existing structure of the executive team? Who will he report to and who will report to him?

The newly created position of President is the #2 role sitting over the entire corporation. Within each of our subsidiaries (O’Neill, Lost, Metal Mulisha and Rusty) we have internal management that is brand specific and Bill will interact with each of the LJG teams.  With the creation of the LJG a little over a year ago, we started to carve out a top tier structure that manages the overall direction and leverages the shared services that apply to all the subsidiaries.

What makes Bussiere a solid fit for this position?

Bill is a well-rounded executive. He is as much operationally savvy, as he is financially savvy.  This means he will be able to wear a lot of hats within the organization as needed. When you have 4 brands operating concurrently, the environment gets borderline psychotic. The landscape of material that you handle on a daily basis can be all over the board, but it keeps the days exciting when you have so many different “irons in the fire.”

What skills and experience does Bussiere bring to the LJG, and how will the company utilize those strengths?

As in any business, the battle is usually won or lost with how you handle one function, Cash flow. Managing cash at a private growth company is as much an art as it is a science. We will call on Bill’s creativity as we finance and feed the aggressive growth plan of the LJG. Among other strengths, Bill’s experience with the acquisitions will come into play at some point down the road for the LJG. While our current business is focused on licensee business, we do plan to own brands longer term.

Why does it make sense for Bussiere to hold the role of President and CFO? Are there efficiencies in combining those roles?

From the outside looking in the title of President & CFO is an extremely important role. When dealing with financial institutions and an array of other business partners, it’s important to communicate who is representing and operating the company day-to-day. Good business relationships are as much about understanding the character of the players and buying into their strategic plans, as much as they are about good financials and balance sheets.

What are the first orders of business that Bussiere will be tackling at LJG?

Bill’s job is just to be a sponge for the next year. We are in no rush to bog him down with a list of “to dos” on day one. He needs to take his time to get rid of the “shell shock” of leaving a public company to join a private home grown organization.  A detox period for Bill is necessary, because we don’t have the same set of pressures of reporting to Wall Street that public corporations face. It’s important to us that he takes his time to learn our corporate culture. This will ensure a transition that provides the time necessary to successfully integrate him into the company.

Over the next 12 months, what are some of the major initiatives at LJG, and how does Bussiere fit into those plans?

In spite of the market downturn, we remain opportunistic about our long-term growth and ability to manage our business through the recession. Bill’s vast industry experience and expertise in acquisitions, banking relationships and financial operations will not only help the LJG navigate the economic storm, but will also assist us to realize key strategic opportunities.

How productive were Surf Expo and ASR for LJG’s brands?

As I stated in our company blog, “I was glad we could make it”! There is no doubt that the shows were productive and the brands that chose not to attend are second guessing that decision. As expected, traffic was lighter than usual, but we were able take advantage of some valuable face time with our retail partners. In these challenging times, solidifying relationships and focusing on key sales strategies, such as O’Neill’s recently introduced “First In” program, which offers retailers a high margin on O’Neill’s best products, is time well spent.

Are you pleased with the initial orders/ pre-books at this point in the season?

Most LJG brands are in the initial launch of the fall ‘09 season. While we are just getting started, the initial response to the product offering has been overwhelmingly positive for all our brands. O’Neill is riding an incredible wave of momentum based on the excitement of the creation of the industries best boardshort, the HyperFreak!

In addition to O’Neill’s momentum, Metal Mulisha is in its inaugural season with an eyewear line that is generating buzz and will prove to be a main competitor within this market. Deegan and the boys are on a mission to cross markets and build a team that dominates multiple categories within action sports.  Lost and Rusty are both working hard in the product silos with plans to stand out among tier 2 brands in 2009. The Blackheart Brother Hood is the latest talent addition to Lost’s product department.

What’s the latest news on La Jolla Group’s move into a new headquarters?

It’s game on! The office demo is complete, the build out has begun, and the warehouse is fully operational and is already shipping and receiving 2009 products! We anticipate the move to commence in late May or early June and we are excited to get all our brands under one roof.