Quiksilver Files For Bankruptcy

It has been announced this morning that Quiksilver will be filing for bankruptcy after it dropped 79% of its market value this year.

Here is the story as reported by Bloomberg business this morning:

‘Under a plan announced Wednesday, affiliates of Oaktree Capital Management LP will supply the chain with the $175 million financing it needs to get through a restructuring. At the conclusion of that process, Oaktree will exchange its debt claim for a majority stake in a reorganized Quiksilver. The plan requires bankruptcy court approval.’

‘The Huntington Beach-based retailer replaced its top executives in March after restating earnings. In June, it scrapped its annual earnings forecast, saying a rebound would take longer than expected. The next month, the New York Stock Exchange threatened to delist the stock because its price was so low.’

‘Quiksilver had already begun talking with potential bidders before filing for bankruptcy in Delaware, people familiar with the discussions said last week. The goal was a management-led buyout in which the company would retain its stores, said two of the people, who asked not to be identified because the process isn’t public. A sale in bankruptcy would allow the chain to abandon costly leases.’

‘The company’s European and Asian operations aren’t affected by the bankruptcy, it said in the statement.’

Cover photo by Luke Gartside