Hawaiian Island Creations in negotiations to be sold

By Dan Nakaso
Advertiser Staff Writer

Hawaiian Island Creations, which started out 30 years ago as the Kailua Bike Shop and grew into seven surf, skateboard and clothing stores, is in negotiations to be sold to an unnamed investment group, company officials said yesterday.

In an industry crowded with dozens of companies that each operate more than one store, Hawaiian Island Creations, or HIC, is considered one of Hawai'i's big three surf/retail companies, along with Local Motion and Town & Country Surf Shop, said Jon Nishimoto, operations manager at Local Motion.

"But a lot of the companies are struggling," Nishimoto said. "We are not impervious to the economy."

Stephen Tsukayama was just 24 years old when he and his 18-year-old brother, James, opened the Kailua Bike Shop near their Kailua home during the energy crisis of the 1970s.

The bike operations died out over time but the business grew to include six stores on O'ahu and a seventh on Maui that focused on surfboards, skateboarding equipment, clothing and accessories.

Sluggish sales have forced the Tsukayamas to consider selling to "an investor group with years of retail surf experience," said Randy Inaba, the company's chief financial officer.

The brothers are in negotiations to continue to play some role in the new company, Inaba said. Most of the company's 75 employees will be rehired, he said.

Inaba would not be specific about how far sales have fallen, but said the reason for the sale of the company was "the economy. 9/11."

Hawaiian Island Creations is known for its circular company logo, which features a volcano erupting like a flower, with the sea and a palm tree in the foreground.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.