Quiksilver Filing For Chapter 11 Restructuring, Billabong Posts Profit

9 Sep 2015 0

Quiksilver team rider Dane Reynolds launching into the unknown as Quiksilver heads towards possibly bankruptcy, Photo by Corey Wilson

Quiksilver team rider Dane Reynolds launching into the unknown as Quiksilver heads towards possibly bankruptcy, Photo by Corey Wilson

How do you think this move will affect Quiksilver? Was this a move that Kelly Slater predicted before his exit? 

After a steep 13 percent decline in sales last year and a net loss expanding to $309.4 million iconic Australian and international surf brand Quiksilver are entering dangerous territory.

Quiksilver Inc. is about to hand control of the company to investment firm Oaktree Capital Management after it was revealed that they are allegedly in the stages of filing for Chapter 11 of the US voluntary administration process.

This major shake-up will not affect the Asia-Pacific or European sectors but is a desperate move to keep the brand intact in the US market says a CW market analyst: "As soon as next Wednesday, Oaktree could own Quiksilver for the cost of its debt, estimated at $175m and would be the decider of its future."

“After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver,” said Pierre Agnes, Chief Executive Officer of Quiksilver. “With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree... We are confident we will emerge a stronger business, better positioned to grow and prosper into the future.”

“The company had been trying to attract bidders for a management-led buyout, ideally outside of a bankruptcy, people familiar with the situation said last week. But that approach would have made it harder to abandon the company’s costly store leases, something the US Chapter 11 restructuring option will allow Quiksilver to do." Bloomberg Business posted today, which points to signs that the company is looking to make major structural changes to cut their losses.

Bloomberg said this morning, that “Quiksilver shares have 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."

In a twist, the Oaktree Group also acquired Billabong and overnight Billabong Director Mattew Wilson has resigned due to a potential conflict of interest involving one of the company's major stakeholders.

"Mr Wilson has decided to resign due to a potential conflict in Oaktree's investment portfolio," Billabong said.

Billabong recently reported its first full-year profit in five years.

*BONUS EDIT > DANE REYNOLDS, STRANGER THAN FICTION

Tags: quiksilver , news , shareholder , topnews (create Alert from these tags)

blog comments powered by Disqus
More From Latest News
The Step-By-Step Guide On Shark Bite First Aid

The Step-By-Step Guide On Shark Bite First Aid

A couple of top tips to save a mates life

0 17 Dec 2017
How To Forecast Your Next Surf Trip

How To Forecast Your Next Surf Trip

Six DIY tips to help you get the most of the magic.

0 9 Dec 2017
Recent

The Step-By-Step Guide On Shark Bite First Aid

A couple of top tips to save a mates life

0 17 Dec 2017
Temporary Outage: Bondi Bondi Beach Surf Cam Back Online

Temporary Outage: Bondi Bondi Beach Surf Cam Back Online

0 14 Dec 2017
How To Forecast Your Next Surf Trip

How To Forecast Your Next Surf Trip

0 9 Dec 2017
And the Superbrand Tazer Surfboard Goes To...

And the Superbrand Tazer Surfboard Goes To...

0 8 Dec 2017
Wave of the Week: Wade Carmichael On Point

Wave of the Week: Wade Carmichael On Point

0 8 Dec 2017
Latest News

The Step-By-Step Guide On Shark Bite First Aid

A couple of top tips to save a mates life

How To Forecast Your Next Surf Trip

Six DIY tips to help you get the most of the magic.

And the Superbrand Tazer Surfboard Goes To...

7 Boards, 7 Weeks Winner Announced!

Wave of the Week: Wade Carmichael On Point

What's the 2018 rook look like on a long righthander?

Popular This Week

Sean Doherty On: F**k, He's Good

Pipeline showdown: The soft launch

Weekend Surf Forecast 15 - 17 December 2017

Another glorious summer weekend of surfing is just around the corner.

Wave of the Week: How Fun Does This Look?

A perfect little runner on the NSW North Coast

Go to Top