Company behind famous Aussie sports brands files for bankruptcy
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Company behind famous Aussie sports brands files for bankruptcy
For many Australians, the names Quiksilver and Roxy evoke memories of sun-soaked days at the beach.
These iconic surf brands have clothed generations of beachgoers in board shorts and bikinis over the years.
However, the tides of retail fortune are changing, and it's about to crash on these brands soon.
US-based Liberated Brands, the licensee for Billabong, Quiksilver, Roxy, and skate brand Volcom, announced that it would file for bankruptcy.
This announcement followed the closure of 120 stores across the United States (US) and Canada.
The brands went through a series of clearance sales, offering discounts of up to 60 per cent.
The company's executives cited a shift in consumer behaviour for their decision.
Shoppers have increasingly turned to cheaper, fast-fashion alternatives from companies like Shein and Temu, which drove the closure.
While stores in North America are up for closure, the impact of this bankruptcy is still uncertain in Australia.
As of writing, Australia has 18 Billabong stores and 13 Quiksilver stores that also stock Roxy products.
The story of these brands is one of true Aussie grit and innovation.
Billabong was founded in 1973 on the Gold Coast by Gordon and Rena Merchant, who built a loyal following with their beachwear.
Quiksilver, which originated in Torquay, Victoria, in 1969, revolutionised the surf scene with its innovative board shorts featuring a 'yoke waist' and Velcro fasteners.
Both brands enjoyed their heyday in the 1990s but faced several financial challenges, leading to a merger in 2018.
Volcom, a California-based sports brand founded in 1991, \became a staple in surf, skate, and snow culture.
These brands, along with RVCA and Spyder, were eventually acquired by Authentic Brands Group.
Liberated Brands was responsible for manufacturing certain clothing items and running the brands' retail and online stores under a licensing agreement.
The Australian-founded brands were sold to New York-based Authentic in 2023 in a confidential deal.
However, the deal reportedly cost over a billion dollars.
Despite the bankruptcy filing, Authentic Brands Group stated that the future of the brands is secure and it will seek new partners for product manufacturing.
David Brooks from Authentic Brands Group further explained the situation.
While the company will still support its licensees, they have already started transferring key licenses to new companies last December.
The stores being closed by Liberated are described as 'outdated and underperforming locations'.
Founded in 2019 when it took over Volcom, Liberated Brands initially thrived, with revenues jumping from $350 million in 2021 to $422 million in 2022.
This success was fuelled by pandemic-driven outdoor activities and an expansion of its brand portfolio.
However, as the pandemic spending waned and interest rates rose, consumer demand also plummeted.
The shift in consumer spending away from discretionary products to low-cost, fast-fashion alternatives has been a significant challenge for Liberated.
JPMorgan Chase has provided $35 million in bankruptcy financing to assist the company through its legal proceedings and store liquidation process.
This news came on the heels of other retail bankruptcies, including the San Francisco-founded Esprit, which also enjoyed popularity in Australia in the 1980s and 1990s.
Australian women's clothing brands Millers and Noni B, along with Rivers, are closing their doors after their parent company, Mosaic Brands, failed to secure a buyer.
As we witness the closure of these stores, it is also a stark reminder of the ever-changing retail landscape.
Let’s hope for the best for Billabong, Quiksilver, and Roxy and hope that Australian surfwear will ride the waves of change.
Have you or your loved ones owned any clothing from the mentioned stores? We invite you to share your memories and thoughts about these iconic brands in the comments section below.
For many Australians, the names Quiksilver and Roxy evoke memories of sun-soaked days at the beach.
These iconic surf brands have clothed generations of beachgoers in board shorts and bikinis over the years.
However, the tides of retail fortune are changing, and it's about to crash on these brands soon.
US-based Liberated Brands, the licensee for Billabong, Quiksilver, Roxy, and skate brand Volcom, announced that it would file for bankruptcy.
This announcement followed the closure of 120 stores across the United States (US) and Canada.
The brands went through a series of clearance sales, offering discounts of up to 60 per cent.
Billabong took off as a popular sportswear brand along with Quiksilver and Roxy. Image Credit: Instagram/Billabong
The company's executives cited a shift in consumer behaviour for their decision.
Shoppers have increasingly turned to cheaper, fast-fashion alternatives from companies like Shein and Temu, which drove the closure.
While stores in North America are up for closure, the impact of this bankruptcy is still uncertain in Australia.
As of writing, Australia has 18 Billabong stores and 13 Quiksilver stores that also stock Roxy products.
The story of these brands is one of true Aussie grit and innovation.
Billabong was founded in 1973 on the Gold Coast by Gordon and Rena Merchant, who built a loyal following with their beachwear.
Quiksilver, which originated in Torquay, Victoria, in 1969, revolutionised the surf scene with its innovative board shorts featuring a 'yoke waist' and Velcro fasteners.
Both brands enjoyed their heyday in the 1990s but faced several financial challenges, leading to a merger in 2018.
Volcom, a California-based sports brand founded in 1991, \became a staple in surf, skate, and snow culture.
These brands, along with RVCA and Spyder, were eventually acquired by Authentic Brands Group.
Liberated Brands was responsible for manufacturing certain clothing items and running the brands' retail and online stores under a licensing agreement.
The Australian-founded brands were sold to New York-based Authentic in 2023 in a confidential deal.
However, the deal reportedly cost over a billion dollars.
Despite the bankruptcy filing, Authentic Brands Group stated that the future of the brands is secure and it will seek new partners for product manufacturing.
David Brooks from Authentic Brands Group further explained the situation.
While the company will still support its licensees, they have already started transferring key licenses to new companies last December.
The stores being closed by Liberated are described as 'outdated and underperforming locations'.
Founded in 2019 when it took over Volcom, Liberated Brands initially thrived, with revenues jumping from $350 million in 2021 to $422 million in 2022.
This success was fuelled by pandemic-driven outdoor activities and an expansion of its brand portfolio.
However, as the pandemic spending waned and interest rates rose, consumer demand also plummeted.
The shift in consumer spending away from discretionary products to low-cost, fast-fashion alternatives has been a significant challenge for Liberated.
JPMorgan Chase has provided $35 million in bankruptcy financing to assist the company through its legal proceedings and store liquidation process.
This news came on the heels of other retail bankruptcies, including the San Francisco-founded Esprit, which also enjoyed popularity in Australia in the 1980s and 1990s.
Australian women's clothing brands Millers and Noni B, along with Rivers, are closing their doors after their parent company, Mosaic Brands, failed to secure a buyer.
As we witness the closure of these stores, it is also a stark reminder of the ever-changing retail landscape.
Let’s hope for the best for Billabong, Quiksilver, and Roxy and hope that Australian surfwear will ride the waves of change.
