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Quiksilver files for bankruptcy in the US

The surf label's street style made it one of the most popular brands of the nineties

Joanna Bourke
Wednesday 09 September 2015 11:14 BST
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Quiksilver was founded in Australia at the height of surf culture
Quiksilver was founded in Australia at the height of surf culture

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It might have been a surf brand, but Quiksilver's street style made it one of the most popular brands of the nineties - even for city kids who had never caught a wave.

Now Quiksilver has filed for bankruptcy in the US. The company has unveiled a $175 million (£113.7 million) restructuring plan, financed by Oaktree Capital Management.

Oaktree, which also owns a stake in sportswear company Billabong, will exchange its debt claim for a majority stake in a revamped Quiksilver, when the restructuring is completed.

Quiksilver has reassured investors that its European and Asia Pacific businesses are still operating as usual.

Quiksilver was founded in Australia at the height of surf culture - epitomised by the Beach Boys’ hit Surfin USA - in the 1960s as a board shorts brand. The company expanded across the globe and has sponsored the sport's biggest names.

However, the company said in June that sales and margins in North America had been affected by poor deliveries and an evolving distribution channel strategy.

Quiksilver saw group sales drop 13 per cent last year, with its net loss widening to $309.4 million and it plans to continue shutting stores in the Americas.

Pierre Agnes, chief executive of Quiksilver, said Oaktree’s investment would allow it to "satisfy our ongoing obligations to customers, vendors and employees, but we will also have the flexibility needed to complete the turnaround of our US operations and re-establish Quiksilver as the leader in the action sports industry".

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