Having its stock price drop 78% to a mere $0.10 a share had the New York Stock Exchange threatening to delist Quiksilver back in July. Now the brand is filing for bankruptcy. Quiksilver photo.
Quiksilver, the popular sportswear company known for surf and snow apparel has filed for Chapter 11 bankruptcy, meaning that it can continue to operate while restructuring the company's finances. Pierre Agnes, Quiksilver's CEO, went on record to say:
"After careful consideration, we have taken this difficult but necessary step to secure a bright future for Quiksilver. With the protections afforded by the Bankruptcy Code and the financing provided by Oaktree [a global asset management firm], we will not only be able to satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our U.S. operations and re-establish Quiksilver as the leader in the action sports industry."
The decision is due to the overreaching brand strategy, "which created a fragmented enterprise with regional brand inconsistencies," according to CEO Andrew Bruenjas. Whether this is due to their foray into snowsports and casual wear, or perhaps their True WetSuits, which were made to look like tuxedos.
Founded in 1969, Quiksilver had a successful run as a mainstay brand for surfers, while also snagging legendary ski and snowboard athletes like Candide Thovex and Travis Rice. Despite the initial shock of the announcement, Quiksilver will maintain their business in both Europe and Asia while the company reorganizes its American branch with $175 million of help from Oaktree Management. This is not, however, the first news of bad financials out of the Quiksilver camp; the long-standing action sports brand has been struggling since 2013, when it ejected snowboard manufacturer Mervin Manufacturing and Tony Hawk's Hawk Designs in order to raise money for the central Quik brand.
Following the filing, Quiksilver will be closing its doors on a number of U.S. storefronts to accommodate the reorganization. Despite the reorganization and Chapter 11 filing, Quiksilver U.S. will remain in business with a select number of stores and through online sales. This announcement comes at a tender time while we wait for Travis Rice's hotly anticipated Art of Flight sequel...