There’s a buzz lately: “Hurley going out of business?” The short answer Hurley is not closing up shop. The brand that helped popularize surf-inspired performance wear is still here, but the way Hurley operates is not the same. Many fans and retailers have questions, so let’s clear up the facts.
Rumors about Hurley disappearing started after major layoffs and structural changes in late 2024. But if you walk into surf shops or browse online, you’ll still find Hurley boardshorts, tees, and hats. The difference now? Who makes those products, and how the company’s business runs under its new owner, Bluestar Alliance. If you’re a business leader, there are lessons here about adapting, managing uncertainty, and focusing on what your market actually needs.
Bluestar Alliance Takes Over: A Shift in Ownership and Model
Start with ownership. In 2019, Nike sold Hurley to Bluestar Alliance, a New York-based investment group known for buying and reviving consumer brands. Think of Bluestar as an operator that finds struggling companies, trims costs, and expands through smart licensing rather than direct design or production.
That’s exactly what happened to Hurley. Under Bluestar, the brand shifted from a traditional in-house business to one that licenses its name, designs, and reputation to outside companies licensees who handle almost everything the customer sees or wears. Bluestar’s team oversees the brand, but most business functions are now distributed among partners who specialize in certain product categories or geographies.
Key takeaway: Sometimes, selling expertise or branding through licensing makes more sense than tying up cash in factories, design, and distribution. Focus on the customers you already have before chasing new ones licensing lets a company scale without traditional risks.
Workforce and Structural Changes Impact Core Teams
Change comes at a cost. In December 2024, Hurley laid off about 60 employees across its marketing, creative, digital, and product development departments almost its entire in-house team. The layoffs sent shockwaves through Southern California’s surf industry. Did you know? Many of these employees had more than a decade with the brand.
How did this play out? Roles that once worked in Hurley’s Costa Mesa office either ended or shifted. Some staff joined Hurley’s many new licensees, who now need their brand knowledge. Others received severance packages and moved on.
If you’re running a scaling business, review regularly who your true revenue generators are. When you pivot your model, retraining or rehiring loyal staff through a different lens such as bringing them in under a new licensee can preserve vital expertise while reducing overhead. It’s not easy, but treating people fairly through the process matters for brand reputation.
The Licensing Model: Who Really Makes Hurley Now?
So, what does Hurley do in 2024 and beyond? The biggest shift is in its business model. Hurley today doesn’t design and produce every product itself. Instead, Bluestar Alliance has assigned rights to various licensees, each responsible for a piece of the business accessories, wetsuits, footwear, or distribution in specific parts of the world.
This might sound risky, but it has precedent. Other big brands, including some in fashion and sports, run lean with licensing and focus resources only on brand management and partnerships.
Here’s how it works:
1. Bluestar oversees the Hurley brand strategy and core creative direction from New York.
2. Licensees specialized manufacturing and distribution firms design, make, and sell Hurley products in line with Bluestar’s brand specifications.
3. Some licensees have hired back former Hurley employees, preserving knowledge and a sense of continuity.
Tip: For companies exploring licensing, define clear guidelines for product quality and marketing. A single weak licensee can damage brand trust for everyone. Balance growth with control review all new partners carefully.
Product Availability: Still in Stores, but with Changes
Customers still want Hurley gear. The brand remains active in over 1,000 specialty surf stores worldwide, plus expanded distribution at mass retailers and online. You may notice fresh designs or a broader range of Hurley-branded goods, as different licensees test new categories.
However, some longtime Hurley shops especially “core” surf retailers have stopped carrying the brand. Owners say the product mix feels less authentic than in earlier years, or that the customer base has shifted. If you manage distribution, use these signals to spot gaps. Review regularly how your products perform at different retailers, and gather honest feedback.
Another way to protect your brand: Focus on deep partnerships with trusted stores, even as you expand. Hurley’s expanded reach comes with the risk of dilution if too many different partners create too many types of goods.
Market Presence and Distribution: A Global Footprint with Local Variability
Hurley didn’t disappear from customers’ sight in 2024, but its “feel” at the retail level now varies by region and store. In some surfing hotspots, Hurley is as visible as ever. In others, the brand is shifting in-store displays and marketing.
Some global markets actually see more Hurley now, since licensees can push into channels Nike or the previous Hurley team didn’t target. For example, Hurley-branded sandals or accessories now show up in new types of sports and streetwear shops in Asia and Europe.
Key takeaway for expanding businesses: Understand which partners can open doors to new markets while protecting your core. Growth through local experts beats one-size-fits-all approaches.
Financial Performance: What Do the Numbers Really Say?
Bluestar Alliance claims Hurley’s global retail value was $900 million in 2022. That’s a big number and much higher than what some industry analysts estimate. This figure includes everything sold under the Hurley name, so it reflects the power of licensing and wide distribution, not just traditional “core” sales.
While exact numbers are hard for outsiders to confirm, it’s clear Hurley is not failing in terms of total product reach. However, higher distribution through licensing doesn’t always translate into higher profits at the brand level if quality or pricing suffers. Track not just your top-line numbers, but feedback, margins, and brand strength.
Did you know? Licensing can temporarily boost your global sales, but it rarely replaces what’s lost if your “core” customers turn away. Balance short-term wins with long-term health.
Industry and Employee Reactions: Concerns and Adjustments
Inside the surf industry, Hurley’s pivot led to real uncertainty. Employees and former staff say communication from Bluestar Alliance was sometimes minimal, fueling anxiety about brand values and future direction.
Some staff who left wish Hurley would double down on authenticity and product innovation. Others, now working with licensees, see the opportunity for broader reach and new ideas. Business leaders can learn here: Even when restructuring is necessary, consistent and open updates help people adjust faster.
Industry insiders also point out that Bluestar’s main skill is brand management, not surf culture. This change worries retailers who counted on Hurley’s deep ties to surf athletes and communities. For your own brand, remember customers notice when the decision-making and creative direction feel disconnected from company roots.
Bluestar’s Broader Brand Acquisition Strategy
Hurley is not Bluestar Alliance’s only play. The company actively acquires established consumer brands, looking for opportunities to turn around underperforming businesses or reach untapped markets through licensing. Past acquisitions include Bebe, Brookstone, and Tahari each running under a licensing and partnership-heavy model.
If you’re tracking Bluestar’s moves, focus on its willingness to invest in brand management, streamline costs, and open new channels. This approach keeps legacy brand names alive, even as operations change behind the scenes.
A practical lesson: As you scale or pivot, look for ways to extract more value from your most trusted assets. Sometimes, shifting from making every product yourself to collaborating with expert partners unlocks growth but only if you protect your core brand promise.
Tip: For deep analysis on this trend, review financial news and operational playbooks at Mega Business Journal.
Conclusion
Key takeaway Hurley isn’t shutting down; it’s remaking how it operates. The brand has shifted to a licensing model under Bluestar Alliance, with broad product availability and a presence in both niche and mass-market channels. However, the company Hurley once was with its California creative team and “core” surf focus is changing dramatically.
This strategic pivot comes with risk. Letting go of in-house expertise and relying on external partners raises important questions about authenticity, product quality, and long-term health. Recent layoffs, structural upheaval, and retailer reactions show the people side of transformation is as vital as the numbers.
But Hurley’s resilience the ability to adapt and remain present for millions of customers worldwide shows what’s possible when a brand focuses on scaling, partnering, and rightsizing for its new reality. As you consider big changes in your own business, review regularly who you serve, focus on what makes you unique, and balance efficiency with the steady cultivation of your core audience.
Hurley’s story isn’t about an exit. It’s about staying in the game by playing it differently. That’s a lesson worth carrying forward.
