9 September 2015
Iconic surf wear brand Quiksilver is filing for bankrupcy according to Bloomberg.
This would effectively give control of the company to Oaktree Capital Management, who also own a sizeable chunk of Billabong shares.
As part of a prearranged Chapter 11 restructuring, Oaktree would provide $ 175 million in debtor-in-possession financing and assume control of the reorganized company.
Quiksilver shares tumbled as much as 78 percent to 10 cents in late trading Tuesday after Bloomberg News reported on the bankruptcy plan. The stock had already lost 79 percent of its value this year, closing at 46 cents earlier in the day.
The company received a warning from the New York Stock Exchange in July that its low stock price put it at risk for being delisted.
Quiksilver rode the fashion trend toward surfer and skateboarding styles in the 1990;s and early 2000’s, along with names like Billabong and Rip Curl.
The company, which teamed up with athletes such as surfer Kelly Slater and skater Tony Hawk, sponsored surfing competitions around the world. They still sponsor the Quiksilver Pro Gold Coast and the Quiksilver Pro France on the World Championship Tour.
But a shift away from surfer fashion — along with broader pressures on the apparel industry — took their toll.
After a period of heady expansion, Quiksilver struggled to compete with fast-fashion retailers like H&M.
Those brands lured away Quiksilver’s teen customers with lower prices and on-trend clothes, and the company lost its cachet with athletes.
The chain suffered a 13 percent decline in sales last year, with its net loss widening to $ 309.4 million.