Summary: Quiksilver’s U.S. business has been struggling for some time and has finally filed for Chapter 11 bankruptcy as they try to sort out their financial problems.
The U.S. division of Quiksilver has filed for Chapter 11 bankruptcy. The popular surfing brand is common around surfing hot spots from the U.S. to Australia. The company was founded in Australia in 1969 and now based in Huntington Beach, California.
The company frequently has big names in the surfing industry representing their name such as Kelly Slater and Tom Carroll. The 1990s appeared to be a peak decade for the company but has been facing heightened competition ever since, especially in the U.S.
The European and Asia-Pacific divisions are not included in the filing since they are still going strong. They listed over $100 million in assets and liabilities of over $500 million. By filing for Chapter 11 bankruptcy, the company will be able to keep running as they reorganize.
Quiksilver has asked that Oaktree Management be able to provide $175 million in financing to the company in a “debtor-in-possession” plan. They will start with closing stores across the country.
They will be reporting their third-quarter financial results later in the day. Their shares have dropped nearly 80 per cent during the year as they dealt with shipping and accounting problems. Their first-quarter earnings report was delayed because of a “revenue cut-off issue.” The CEO at the time, Andy Mooney left the company soon after.
Photo: buywake.com