Athleta moving headquarters out of Petaluma

Athleta, the popular women’s athletic apparel retailer based in Petaluma, will move its offices to San Francisco early next year, a spokeswoman for parent company Gap, Inc. confirmed Wednesday.

“Athleta will be relocating its headquarters to San Francisco in early 2017,” spokeswoman Julie Van Vliet said in an email Wednesday.

She said the decision to move the company out of Sonoma County was “driven by our long-term need to accommodate growth” for Athleta, which was acquired by San Francisco-based Gap for about $150 million in 2008.

Van Vliet didn’t immediately provide information about the number of workers in Petaluma or their fate. But an employee said privately that Athleta workers in Petaluma have been given the option of commuting to the City.

Athleta had about 200 workers in Petaluma in 2012.

The company will relocate to space owned by Gap at 1 Harrison Street in San Francisco.

The news came as a surprise Wednesday to the city’s chief economic development official.

“I’m very sad to hear that Athleta will be relocating to the City,” said Petaluma economic development manager Ingrid Alverde.

Petaluma officials will reach out to Athleta’s human resources staff to see if any workers would like help in seeking a new career in Sonoma County, which is experiencing a tight labor market, Alverde said.

“There are a lot of companies that are looking for talent so there might be a match,” she said.

And while she called the move unfortunate, she maintained the Petaluma economy was diverse and “will continue to thrive.” Though its brand is known nationally, Athleta doesn’t rank within Petaluma’s top 10 employers.

Founded in 1998, Athleta offered Gap the means of entering the popular athletic apparel business, especially the booming yoga clothing sector. Its pants retail from $25 to $80 online.

Women’s athletic clothing has remained a bright spot for the 47-year-old Gap as it faces a challenging retail environment due to changing trends and to the migration of customers toward online sales.

On Oct. 6, Gap reported that September sales decreased 2 percent to $1.43 billion, compared to $1.46 billion for the same period last year. Gap doesn’t break out sales figures for Athleta.

Athleta had 126 retail stores as of July 30, according to SEC filings, opening six locations and closing none this year, even as other GAP brands were forced to close locations. Athleta stores had an overall footprint of about 500,000 square feet.

In contrast, Gap announced last year it was closing 175 of its namesake stores and eliminating 250 jobs at its headquarters. The company employs 141,000 full- and part-time employees.

The Gap and related Banana Republic stores at Santa Rosa Plaza closed this year, though the company still has a Gap outlet at the Petaluma Village Premium Outlets.

Gap announced Tuesday it was closing all of its Banana Republic stores in the United Kingdom.

You can reach Staff Writer Robert Digitale at 707-521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit. You can reach Staff Writer Bill Swindell at 707-521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.