South Moon Under to leave Berlin for Annapolis
South Moon Under grew up on the Eastern Shore, evolving from a humble Ocean City surf shack into a regional fashion retailer headquartered in Berlin.
Now, it appears the company has outgrown the Shore.
The ocean-inspired firm is moving away from the ocean. It plans to shut off the lights at its main office in Berlin off Franklin Avenue at the end of the first week of August. It will start business at its new home in Annapolis the following Monday.
The move reflects a reality many employers struggle with on rural Delmarva.
"Recruiting to Berlin has its challenges, and we wanted to be closer to a bigger metropolitan area," said Michael Smith, who took over as South Moon Under's CEO last March. ”Berlin is a charming town and Ocean City is a great place, but it’s hard to get people to relocate here.”
The relocation represents about 65 jobs leaving the area.
A little more than 60 percent of those employees are transferring to the new office, which will be in a corporate park, Smith said. Another contingent is expected to work across the bay on a temporary basis. The rest are either working out of an Ocean City satellite office or elsewhere in the company.
The move isn't affecting South Moon Under's distribution center in Salisbury, Smith said.
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Moving to Annapolis gives the company better access to airports and easy transport along Interstate 95, he added. Today, South Moon operates 24 stores from Virginia to Connecticut.
The new headquarters is tied to an expansion set in motion when a private equity firm called JPB Capital Partners bought a majority stake in the company in the spring. That brought on board Smith, who led White House/Black Market until it was sold to Chico's in 2003.
He envisions expanding to up to 250 stores nationwide while holding fast to the company's customer-centered ideals. Frank Gunion, who founded the company in 1968, remains a member of the board.
Merry Mears, director of Worcester County Economic Development, called the move a wise business decision that makes sense for a company that is trying to establish a national brand.
But "we're certainly sad to see them leave and have their headquarters in Annapolis," she said.
As for South Moon's campus, Gunion retains ownership. Mears said she hopes the company's longtime presence in Worcester will translate into future opportunities between the two parties.
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