The troubled surfwear retailer Quiksilver has filed for bankruptcy with a plan to hand control over to lender Oaktree Capital Management LP. The Huntington Beach company cut 80 jobs.
The company said it listed assets of more than $100 million and liabilities of more than $500 million in its bankruptcy filing.
Quiksilver has been struggling in recent years as people moved away from surfwear and skateboarding clothing to fast-fashion retailers like Hennes & Mauritz. The company had reported double-digit percentage decline in revenue in the past five quarters.
Quiksilver's shares had lost nearly 80 per cent of their value this year through Tuesday's close of 45 cents. Filing for bankruptcy will facilitate a restructure designed to restore the company's financial health, Quiksilver said.
Its Asia-Pacific and European businesses remain strong and are not part of the bankruptcy filing, it said US investment company Oaktree Capital, the largest shareholder Billabong, is set to emerge with control of Quiksilver as part of a $US175 million ($249 million) refinancing of the beleaguered retailer's US business.
..... Devashree Goenka