Beloved Surfer Brand Quiksilver Files for Bankruptcy
In the days of long, shaggy hair and surfer slang, Quiksilver was the California surf/skate brand that ruled them all. Today, however, the once must-have label for logo tees and plaid skate shorts has lost a bit of its cool.
The 46-year-old brand, which also owns sister label Roxy, filed for Chapter 11 bankruptcy on Wednesday, WWD reports. Oaktree Capital Management LP and Bank of America are offering $175 million debtor-in-possession financing while Quiksilver tries to complete the turnaround it began in 2013.
The company has been struggling to remain on top for a while now, with sales falling 13 percent in the last year. Earlier this month, Quiksilver laid off 80 employees at the company's Huntington Beach, Calif.-based HQ. With rumors of the imminent bankruptcy, shares in the company once championed by the likes of Kelly Slater and Tony Hawke fell 67 percent on Tuesday.
CFO Andrew Bruenjes attributes part of the brand's downfall to its spread-out operations, which are flung out across the world. "This framework created a fragmented enterprise with regional brand inconsistencies," he told Bloomberg, noting that almost two-thirds of revenue comes from sources outside the U.S. CEO Pierre Agnes also said in a statement that only the domestic operations are affected, noting that the European and Asian legs of the business "remain strong."
With fresh funds from Oaktree, Agnes hopes that the label, which currently has approximately 700 stores in operation, can make a full comeback. "We are confident we will emerge a stronger business, better positioned to grow and prosper into the future," he said.