Quiksilver Files For Bankruptcy
Following in the footsteps of Billabong, Quiksilver has filed for bankruptcy in the US. This will presumably affect DC Shoes also, as Quiksilver owns DC. Big news for a few sports. Any thoughts?
Further info:
Quiksilver has filed for Chapter 11 bankruptcy in the US, and have announced that Oaktree Capital Management is their new investor to help with its restructuring. Oaktree are the company who have helped inspire Billabong’s turnaround plan with a 19.2% stake in the company.
The bankruptcy procedure will only apply to the American part of the company, which has been the under-performing region in the business. Europe and Asia Pacific are not to be affected by the bankruptcy.
Quiksilver will no longer be listed on the New York Stock Exchange and Oaktree Capital Management will supply the company with the $175 million financing it needs to get through a restructuring.
The bankruptcy process will allow Quik to get rid of a lot of its debt and also close under-performing stores with long-term lease agreements. The restructuring will also allow for the company to reassess its distribution network, and the funding from Oaktree has been deemed sufficient in safe-guarding jobs in the European and Asia Pacific regions.
I guess whenever you see a surf brand sellin AFL Branded board shorts in a sports store, it’s destiny was written on the wall!!!!!
bankruptcy is a complicated animal in the states. many people and businesses file for bankruptcy simply to clear their debts so they can restructure their business.
Its only Chapter 11 so I doubt we’ve seen the last of Quicksilver.
Almost as good as 50 cent filing for chapter 12 and then buying an African mansion.