Liberated Brands Files for Bankruptcy Affecting Iconic Australian Surfwear Brands
Liberated Brands, owner of Billabong, Quicksilver, and Roxy, has entered bankruptcy impacting its US and Canadian stores, leading to layoffs and potential international business sale.
The company that holds the licences for Aussie surfwear brands Billabong, Quicksilver, and Roxy has filed for bankruptcy, according to US Bloomberg.
Liberated Brands, which runs the iconic Australian brand names, will shut all 120 of its US and Canadian stores.
On Sunday, Liberated Brands filed for court protection in Delaware.
Australia has 18 Billabong stores and 13 Quiksilver stores, but it is unclear if the US bankruptcy will affect Australian stock.
Billabong was founded in 1973 on the Gold Coast by surfboard shaper Gordon Merchant and partner Rena, who started by designing board shorts.
Meanwhile, Quicksilver was founded by Australian surfers Alan Green and John Law in Torquay.
According to Bloomberg, Liberated Brands -- which had operated the brands under a deal with licenser Authentic Brands Group LLC -- said it will seek to sell its international businesses and has closed its corporate offices.
Authentic Brands Group LLC has said the bankruptcy will not affect the future of the brands and it will find a new company for the licence.
However, about 1,400 employees will be laid off.
The business has blamed customer moves towards "fast fashion", including online retailers such as Shein and Temu.
Liberated listed more than $100 million in liabilities on its Chapter 11 petition and has lined up a $35 million loan to fund the bankruptcy, according to the report.
It had an impressive rise and fall, with revenue increasing from $350 million in 2021 to $422 million in 2022 -- a jump attributed to an increase in demand during the pandemic.
Liberated CEO Todd Hymel said a combination of the ongoing pandemic and interest rates then resulted in lower demands, according to the court filings cited by Bloomberg.
"Consumers can cheaply, quickly, and easily order low-quality clothing garments from fast-fashion powerhouses and have such goods delivered within days," Hymel said, according to the report.
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